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Borrowers pursuing forgiveness programs face additional time pressure. Months spent in SAVE forbearance—during which loans accrued interest but payments were paused—will not count toward income-driven forgiveness deadlines, which typically run 20 to 25 years. Betsy Mayotte, founder of The Institute for Student Loan Advisors, emphasized in PBS reporting that borrowers seeking forgiveness “should switch over ASAP because you’re just losing time.”

Missed payments started to show up on borrowers’ credit reports just last January — which, to some, was a surprise.

“They kind of stopped paying attention to their loans because they didn’t have to for so long,” said Betsy Mayotte, president of The Institute of Student Loan Advisors. “And they were caught off guard.”

Mayotte called the past five years the most chaotic in student loan policy history.

The Wheelhouse

Our President, Betsy Mayotte, joined the Wheelhouse to discuss student loans and how to manage debt during the most chaotic time in student loan history.

“You should never have to pay for help with your student loans, there are so many resources out there.”
“It’s been one of the most chaotic times for student loan borrowers. Mainly because there have been several ‘never happened before’ changes.”
“Hopefully borrowers are reaching out to me before they start at their institution. My goal is to understand the return of investment before borrowing.”

The Dallas Morning News

There are many reasons people may be defaulting on their federal student loans, said Betsy Mayotte, president of The Institute of Student Loan Advisors. The nonprofit provides free student loan advice and dispute resolution assistance to borrowers nationwide.

Mayotte said borrowers may be struggling to make their student loan payments again after the federal government issued yearslong pauses on collections and implemented new policies and repayment plans.

“The people least likely to default are the people in the habit of making their student loan payment,” Mayotte said. “These people are going back into repayment at a time when their health care premiums are higher, gas prices are higher [and] groceries are a lot higher.”

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“Anybody who is still borrowing for their children needs to understand that the payment plans, they aren’t going to have any lower payment options at all,” said Betsy Mayotte, the president of the Institute of Student Loan Advisors. “Families need to be extra cognizant of how much they’re borrowing and what the monthly payment is going to be and for how long, and whether that’s something that’s going to be affordable.”

The Independent

“Borrowers are taking longer to repay their loans, and that’s why we’re seeing more older borrowers,” explained Betsy Mayotte, president and founder of The Institute of Student Loan Advisors, a nonprofit that offers free advice to consumers.

Another reason, Mayotte said, is the rise in non-traditional students. “So, not someone right out of high school going to college, but someone in their 30s or 40s going back to college trying to get better employment,” she said.

Lots of borrowers are feeling that blow, and some believe there’s still a way out.

“They’re hoping that the next administration will make forgiveness happen, and/or revitalize something like the SAVE Plan,” said Betsy Mayotte, who leads The Institute of Student Loan Advisors.

Mayotte doesn’t think that reversal is going to happen. But it’s understandable to think it might — Mayotte calls the past five years the most chaotic in student loan policy history.

“The whiplash of the different policy proposals, and ‘You have this available.’ ‘No, you don’t,’ just makes borrowers uneasy and anxious and angry,” she said.