Home |Student Loan | Should I enter forbearance with Aidvantage or simply avoid making payments until my employer plan starts in November, considering the new repayment rules and the claim that non-payment won't impact my credit for the next 12 months?

Should I enter forbearance with Aidvantage or simply avoid making payments until my employer plan starts in November, considering the new repayment rules and the claim that non-payment won't impact my credit for the next 12 months?

Abbey Johnson, Helping with Student Loan Documentation
Answered on October 02,2023

Check here.

This on-ramp period protects borrowers from having a delinquency reported to credit reporting agencies. This prevents the worst consequences of missed, late, or partial payments.

However, payments are still due, and interest will continue to accrue (add up). We will not report you as delinquent during the on-ramp, but we do not control how credit scoring companies factor in missed or delayed payments.

It is my understanding that it is not that you can’t pay, it’s that you’d prefer not to. And why gamble on potential consequences for money you could pay? A forbearance would make it so you’re not.

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Ultimate Guide on SAVE Plan - Payment Calculation, Interest, Forgiveness

Under the Saving on a Valuable Education (SAVE) plan, a single borrower who makes less than $15 an hour will not have to make any payments. Borrowers earning above that amount would save mor..
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Should I enter forbearance with Aidvantage or simply avoid making payments until my employer plan starts in November, considering the new repayment rules and the claim that non-payment won't impact my credit for the next 12 months?

Ultimate Guide on SAVE Plan - Payment Calculation, Interest, Forgiveness

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