If your federal student loans are not in repayment, after the on-ramp ends on September 30th, a few things could happen, depending on your specific situation:

• Late Fees and Interest: You may incur late fees or additional interest charges. Federal student loans still accrue interest during periods when you are not making payments.
• Credit Score Impact: For Federal Student loans, late payments will be reported to the credit bureaus after 90 days of missed payments. And these reports can negatively affect your credit score.
• Collections: After 270-360 days of missed payments, your loans are at-risk of defaulting which could lead to collection actions, including garnishment of wages, tax refunds or even Social Security benefits.
• Loss of Benefits: You might lose eligibility for benefits like income-driven repayment plans, deferments and access to additional federal aid.

If you are having trouble making payments, now is a good time to review your student loans and determine if you are in the right repayment plan. Log in to SDS to determine if you are eligible for lower monthly payments and check for cancellation/forgiveness eligibility. There is no-risk, no credit card required, to see available solutions for your loans!

This article and more about student loans can be found at the SDS Advisor Resource and Blog.