Nearly 44 million Americans hold student loans and the debt balance in the U.S. has increased by 66% over the past decade to more than $1.77 trillion, according to the Federal Reserve.
President Joe Biden's plan to cancel up to $10,000 in federal student loan debt was struck down by the Supreme Court earlier this summer, meaning loan payments will soon be coming due for the first time since 2020.
In Indiana, 57% of college graduates had student loan debt in 2019-2020, with an average of $28,521, according to the Institute for College Access and Success.
Here's what to know about when payments are due, new repayment plans and more in Indiana.
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Is student loan debt forgiveness still possible?
If you have been making payments for 20 years or more, you may be eligible for the remainder of your debt to be canceled.
The U.S. Education Department said in July it was adjusting student loan payment calculations in a move to correct past errors and more than 800,000 people would have the balance of their loans erased.
The move survived several lawsuit challenges and is currently underway. You can read more about the details here, but remember that anytime a loan amount is forgiven it can potentially be considered taxable income in the year it occurs, depending on your repayment plan and loan program, according to TurboTax.
When are student loan payments due in Indiana?
Starting Sept. 1, interest began accruing again on loan balances, and the first payment will be due in October. You should check with your loan provider on the exact due date.
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Is there any way to reduce my student loan debt?
If you’re employed by a government or not-for-profit organization, you might be eligible for the Public Service Loan Forgiveness Program. This program forgives the remainder of your loan, but has a host of requirements including having made a total of 120 qualifying monthly payments.
You can learn more about qualifying and applying for this forgiveness here.
Teachers may also be eligible for forgiveness if they have taught for at least five years in a low-income school, and met several other criteria.
If you are permanently disabled, or your school closed or misled you then you may also be eligible for loan forgiveness. You can find the full list of forgiveness programs here.
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Is my student loan balance negotiable?
While some may be hoping to negotiate with their loan providers to reduce their balance, for example in exchange for a full cash payment of the remainder, they aren't likely to budge.