12-month “on-ramp” period FAQs

HomeAll PostsOur Community

12-month “on-ramp” period FAQs

There are many types of student loan forgiveness programs available. Besides the SAVE Plan, an income-driven plan, there is the 12-month "on-ram

3 Ways to Elevate Your Brand Perception
How to Get Booked as a Podcast Guest
What You Need to Know About the SBA 8(a) Certification

There are many types of student loan forgiveness programs available. Besides the SAVE Plan, an income-driven plan, there is the 12-month “on-ramp” period that can help student loan borrowers like you. Here’s what you need to know about it. 

What is the 12-month “On-Ramp” Period About?

This student loan forgiveness program is geared at reducing the penalties for borrowers who are delinquent on their loans.

The White House says the 12-month “on-ramp” to repayment was instituted so that “financially vulnerable borrowers who miss monthly payments during this period are not considered delinquent, reported to credit bureaus, placed in default, or referred to debt collection agencies.”

However, the White House says that the loan will still attract interest during this time, and the payments will still be due. 

You don’t have to apply to this program; you’ll be automatically enrolled if you don’t make your payments.

The White House still encourages borrowers to make payments if they can.

They said, “Borrowers who can pay should do so, but this on-ramp period gives borrowers who cannot make payments right away the necessary time to adjust, enabling them to ultimately make their monthly payments and meet their financial obligations on their loans.”

When does the “On-Ramp” Period Start?

The “on-ramp” period starts October 1, 2023.

When Does the “On-Ramp” Period End?

The “on-ramp” period will end September 30, 2024.

What are the Pros and Cons of this Program? 

There are several pros and cons to the 12-month “on-ramp” program. Here is what you need to consider, according to Nerd Wallet. 


  • Perfect for borrowers with difficulties, such as not having a job.
  •  Missed payments will not affect your credit.
  •  Unpaid interest won’t be added to the principal amount after the “on ramp” period ends. In other words, there is no capitalized interest; therefore, you won’t pay interest on a larger amount, just the principal balance. 
  •  Your missed payments won’t be reported to debt collection agencies, which means you won’t experience garnishing of money or benefits like your tax refund. 


  • If you miss payments, interest will still accumulate, increasing your loan amount. 
  •  Your loans will still be due at the end of the “on-ramp period.”

Should I Take Advantage of the “On-Ramp” Period? 

If you need to use the “on ramp” period to get back on your feet, then use it.

However, Michele Shepard, senior director of college affordability at The Institute for College Access & Success, was quoted in a Nerd Wallet article saying that this program is more of a safety net than a repayment strategy. 

Nerd Wallet says don’t use the entire year if you don’t need it. 

They also said, “Otherwise, if you can afford to make payments, then plan to do so when your first student loan bill comes due in October. “

Next Steps 

You can check out our student loan resources:

You can also keep an eye on our YouTube Channel where we discuss student loan forgiveness programs. Here is one of our latest videos. 



As an Amazon Associate, we may earn commissions from qualifying purchases from Amazon.com.

This Website and description may contain affiliate links, which means that if you click on one of the product links, we’ll receive a small commission. All products have been researched, but do your due diligence.