As the student loan payment pause comes to a close this fall Minnesota's borrowers are being reminded what their rights are when it comes to repayment.
The Student Loan Borrower Bill of Rights was created by the Minnesota Department of Commerce to lay out the duties of student loan servicers as well as conduct around communication between services and borrowers.
The department's Mark Hastie says Minnesota is one of many states adopting a set rights for borrowers while also setting rules for loan servicers.
"They have to ensure that when they report information to consumer reporting agencies, which affects your credit score, that's accurate when they do so," explains Hastie.
Hastie adds that it is important for borrowers to make sure they know who their current servicer is and to check on all details associated with upcoming payments including deferment options.
"Things will revert back to what they were pre-pandemic where you can request deferments for balances," he says. "If you have financial hardship, the bill of rights really make sure that they have to offer and evaluate income driven repayment before putting someone in default is critical."
Hastie says borrowers can best be prepared for repayment by checking in on all the details they currently have set up with their servicer, even if they aren't a newer borrower.
"Important note for borrowers as repayments start that we hope doesn't trip people up is that if they, before the pandemic, had automatic debit from their accounts to pay when they were paying their student loans, that they will have to actually reauthorize those automatic debits to pay their bills."
The student loan payment pause ends August 31.
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