The term “student loan payments resume” refers to the restarting of monthly loan payments after a period of deferment or forbearance. During deferment or forbearance, the borrower is allowed to temporarily pause or reduce their loan payments due to financial hardship or other qualifying reasons. Once the deferment or forbearance period ends, the borrower must resume making payments as per the original loan agreement.
Resuming student loan payments is important for several reasons. First, it helps the borrower to stay on track with their repayment schedule and avoid default. Defaulting on a student loan can have serious consequences, such as damage to the borrower’s credit score, wage garnishment, and tax refund seizure. Second, resuming payments allows the borrower to start reducing the principal balance of their loan. This can save money on interest charges in the long run.
