The department’s Office of Federal Student Aid announced the decision that was effective May 5 after a five-year pause in March 2020. Minot State’s financial aid assistant director, Lindsey Benson, said borrowers are given a six-month grace period to set up a payment plan after graduating or withdrawing.

TransUnion, one of the three major credit bureaus, found that one in five student loan borrowers is at risk of defaulting.