Michigan Student Loan Holders: How to Avoid Delinquency Starting October 1st

Starting October 1st, Michigan student loan holders will face a tough reality: for the first time since the COVID-19 pandemic, they can become delinquent on their loans. After more than three years of a payment freeze, student loans are now due again, and interest for those who are behind is piling up quickly.

It’s a rough situation for many, and falling further behind can now lead to some pretty serious consequences—like damaging your credit score or having your wages garnished.

Recent data from WalletHub shows that Michigan is now ranked 3rd in the nation for student loan delinquency. In the second quarter of 2024, 0.88% of student loan accounts in Michigan were delinquent, marking a sharp 17.06% increase from the previous quarter. This sharp rise in delinquency means many Michigan borrowers are struggling to keep up, and it’s clear that the financial fallout is starting to hit hard.

If you’re one of the many facing this challenge, now is the time to act. Missing payments can cause long-term damage, so looking into your options as soon as possible is important. Income-driven repayment plans, deferment, and loan consolidation are all tools that might help. Also, making smaller payments while you can still helps keep that interest lower than just entirely ignoring the problem would.

Don't wait until the situation gets worse, taking control now can help prevent bigger financial headaches. Your financial future is in your hands—handle it before the consequences catch up to you.