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PERSONAL FINANCE JPMorgan says college-planning firm it bought lied about its scale. Consumers may have been misled, too

There are plenty of free resources families can turn to for help with financial aid, said Betsy Mayotte, president of The Institute of Student Loan Advisors, a nonprofit.

“The simplest thing to keep in mind is that nobody should ever have to pay for student loan or financial aid help,” Mayotte said. “Doing so will never get you access to a program that you wouldn’t normally be eligible for.”

How Student Loan Borrowers Can Prepare for Big Changes Coming in 2023

Whenever payments do resume, experts have said they’re worried about how to limit the number of borrowers who fall through the cracks and fall behind on their bills. One of the biggest indicators of whether a borrower will be successful making payments is simply whether they’re in the habit of doing so, Betsy Mayotte, founder of The Institute of Student Loan Advisors, previously told Money.

“We’ve taken all these people that were in the habit of paying out of the habit,” she says. “The longer we go, the harder it’s going to be to get them back in.”

Student loan proposal could lower payments, forgive interest

President of The Institute of Student Loan Advisors, Betsy Mayotte, says there are multiple income-driven repayment plans.

The proposal revises one of the plans, she says, to hopefully simplify things and lower monthly payments.

“It actually potentially reduces even further payments for people that stand to benefit from these income-driven plans. The existing plans already discount a percentage of the borrower’s income that it takes into account. This one almost doubles the amount that it’s discounting that income. So borrowers could see a really significant reduction in their payment as a result of this draft plan,” she said.

2023 Is Here — And Big Questions on Student Debt Still Loom

However, there’s no clear timeline for when borrowers can sign up. We don’t yet know exactly how the new IDR plan will look in its final form, who will qualify and when applications will open. The plan’s draft rules could come out tomorrow or six months from now, says Betsy Mayotte, president and founder of The Institute of Student Loan Advisors. 

“The draft rules can change significantly between draft and final, but at least we’ll have a better picture of what that new IDR plan might look like once we get the draft,” adds Mayotte.