Penalties for missed student loan payments resume Tuesday | Top Stories [Video]

FLINT, Mich. (WJRT) – The grace period for missed student loan payments ends September 30. That means starting in October missed payments will begin to impact your credit score.

Those payments actually restarted last year, but the Biden Administration offered a 12-month on-ramp where you could miss a payment without penalty. Now, that on-ramp is coming to a close.

“So, on October 1st the chickens come home to roost on student loans and you have to pay them back,” said Gary Fisher with G.L. Fisher Capital Management.

Starting Tuesday, if you miss a payment, not only is your credit score going to take a hit, but you could also have money taken directly out of your paycheck.

“Payment will be due as it has been for the past year, but now if they don’t pay, that’s going to be reported to credit bureaus and the Department of Education can collect …