The student loan payment pause ended in October 2025. We're now around 9 months into payments resuming. And I'm still getting panicked emails every week.
Look, I get it. You got used to not paying. That extra $200-500 a month went to other things. Now it's back. It hurts.
But here's the thing: you have options. And ignoring your student loans is the worst one.
I had a client — call him Derek — who had $42,000 in federal student loans at around 4.5% interest. He stopped paying when the pause ended. He didn't tell anyone. He just... stopped. Six months later, his credit score dropped from 720 to 580. The loans were in default. The government was garnishing his tax refund.
He came to me in a panic. We got him on an income-driven repayment plan. His payment dropped from $380 to $120 a month. The default was cured after 9 months of on-time payments. His credit is slowly recovering.
Here's what you should do if you're struggling with student loans:
1. Check if you qualify for an income-driven repayment (IDR) plan. Payments can be as low as $0 if your income is low enough. And after 20-25 years, the remaining balance is forgiven. The applications take maybe an hour. Do it.
2. If you're in default, look into "Fresh Start." That's a government program that pulls your loans out of default and restores your payment history. It expires in 2027. Don't wait.
3. If your loans are private, refinance if you can. Private loans have fewer protections. Rates might be around 5-8% now. If you have a good credit score, refinancing could save you thousands. But be careful: you lose federal protections (like IDR and forgiveness).
The government is also testing a new "SAVE" plan (it started in 2024, but some details changed in 2026). Under SAVE, if your original loan balance was under $21,000, you could get forgiveness in as few as 10 years instead of 20. I've seen it work for clients. It's worth checking.
Derek is now on track to have his loans forgiven in 18 years under PAYE. He's paying $120 a month, which is less than his phone bill. He's not happy about it, but he's not drowning either.
The pause is over. But the help isn't. Use it.
I will keep posting updates on this. Check back soon.
P.S. Cooper is now snoring again. He's dreaming of chasing squirrels. I'm dreaming of a world where student loan interest rates are under 3%. Both are fantasies, but at least Cooper's is cute.