The United States Department of Education said that 40% of the 22 million student loan borrowers did not make their first payment since a three-year pause came to end in October.
U.S. Undersecretary of Education James Kvaal said that those who missed their first payment have 12 months to get back on track before they face the consequences, such as being reported to the three major credit bureaus and mandatory collections.
"While most borrowers have already made their first payment, others will need more time. Some are confused or overwhelmed about their options. We want to make sure borrowers know that our top priority is to support student loan borrowers as they return to repayment," he wrote in a blog post.
"To give borrowers breathing room while they work student loan payments back into their monthly budgets, we created the 12-month on-ramp period. Until next September, borrowers will be protected from the harshest consequences of missed payments, such as delinquency, default, and mandatory collections."
However, they will still accrue interest on the balance of their loans.
While nine million people missed their first payment, Kvaal emphasized that 60% of borrowers did make their payment, including four million people who made a payment for the first time ever.
"Today's data show that most borrowers are already making payments, while millions are benefiting from expanded student loan benefits and forgiveness," Kvaal wrote.
