Representative Brittany Pettersen

Student Loan Repayment Resuming

Dear [firstname],

Federal student loan payments resumed this month, after a three year pause enacted because of the economic fallout from the global pandemic. As Coloradans work to fit student loan payments back into their budget, my office put together resources to help.

Do you think student loans should be forgiven?

Yes

No

I know firsthand how difficult it can be to afford a higher education. I had to wait tables to put myself through school at Metropolitan State University and became the first in my family to graduate college. While I was able to put myself through school, with the sky-rocketing costs of higher education, I know that would be impossible today.

That's why I'm working on robust investments for our state and community colleges to reduce education costs, as well as loan forgiveness for students in critical need areas, like health care, education, and child care.

While Americans transition back to regular loan payments, I want to make sure you have the resources you need. Check out the links below and please let our office know if you have any questions.

ONLINE RESOURCES FOR RETURNING TO REPAYMENT

The U.S. Department of Education has published an array of accessible resources to help guide borrowers through the return to loan payments and interest accrual, including resources for borrowers who are restarting payments, repaying for the first time, or looking for the best repayment strategy.

For Borrowers Restarting Payments: studentaid.gov/restart

For Borrowers Repaying For The First Time: studentaid.gov/firstpayment

For Borrowers to Learn about Repayment Options: studentaid.gov/loan-simulator

For Borrowers Creating/Finding Their FSA ID: studentaid.gov

SAVING ON A VALUABLE EDUCATION (SAVE) PLANS

In August, the Department of Education launched a new Income-Driven Repayment (IDR) plan, Saving on A Valuable Education (SAVE), that will significantly lower monthly payments for many low- and moderate- income borrowers and provide them with clearer and faster pathways to loan forgiveness. Under this plan, borrowers making less than $15 an hour will not have to make any payments and all other borrowers will save more than $1,000 a year on their payments, compared to other IDR plans. Moreover, under these plans, borrowers’ balances will not grow due to unpaid interest.

FOR BORROWERS: studentaid.gov/save

PUBLIC SERVICE LOAN FORGIVENESS (PSLF)

The Public Service Loan Forgiveness programs allows eligible borrowers employed by a federal, state, local, or tribal government or nonprofit organization to have the remaining balance of their Direct Loans forgiven after making the equivalent of 120 qualifying monthly payments.

FOR ELIGIBLE BORROWERS EMPLOYED IN PUBLIC SERVICE: studentaid.gov/pslf

ONE-TIME ACCOUNT ADJUSTMENT FOR IDR & PSLF

Last year, the Department of Education announced a one-time account adjustment for IDR and PSLF plans to address past inaccuracies, forbearance steering, and deferments. Borrowers may be eligible to receive credit for past periods of repayment, forbearance, and deferment that would otherwise not qualify for IDR or for PSLF.

FOR BORROWERS SEEKING A ONE-TIME ACCOUNT ADJUSTMENT:

studentaid.gov/idradjustment

FRESH START PROGRAM

Fresh Start is a one-time, temporary program that offers borrowers a path out of default and restores their access to federal student aid. Borrowers who access this program will be able to end collections on defaulted loans, remove default from credit reports, and enroll in a repayment plan, including IDR plans.

FOR BORROWER WITH LOANS IN DEFAULT: studentaid.gov/announcements-events/default-fresh-start

Colorado Programs and Resources

In addition to the federal resources above, the state of Colorado offers several additional loan repayment programs, including:

Health Professional Loan Repayment
Health care professionals working in designated practice areas or regions of the state may qualify for additional loan repayment options, including primary care providers working in designated health professional shortage areas.

Colorado Health Service Corps
You may be eligible to receive repayment of qualified student loans if you practice in a Health Professional Shortage Area, delivering primary health care services, in a public or nonprofit clinic. The practice must accept public insurance and offer discounted services to low-income, uninsured patients on a sliding fee scale.

Nurse Faculty Loan Repayment
Colorado residents with current RN licensure who serve as faculty members at qualifying schools or nursing may qualify for loan repayment. You can find more information about the Nurse Faculty Loan Repayment Program at:
https://cdphe.colorado.gov/nurse-faculty-loan-repayment-program

State Dental Loan Repayment Program
Some general and pediatric dentists and dental hygienists in public, nonprofit, or private dental practices that see Medicaid, CHP+, and/or uninsured patients may qualify for student loan repayment. For more information, please visit:
https://cdphe.colorado.gov/prevention-and-wellness/health-access/health-professional-loan-repayment/state-dental-loan-2

Rural Essential Access Provider (REAP) Loan Repayment Program
Rural health care providers at qualifying health care service sites in rural and frontier counties of Colorado may qualify for loan repayment. To confirm if your workplace qualifies as an approved site, click here. For more information on the REAP program, click here.

If you have questions about your federal student loans, need help with a federal agency, or have any questions, please call my Lakewood office at (303) 274-7944 or my Cañon City office at (719) 458-6161. To stay up to date on everything I'm doing for you in Congress, follow me on Twitter, Facebook, and Instagram.

Thank you for reading,

Brittany Pettersen
Member of Congress

Student Loan Repayment Resuming

Colorado Programs and Resources

Office Locations