After a three-and-a-half-year redemption, interest began accruing on federal student loans again last Friday, marking the official end to pandemic relief for about 43 million borrowers. The first student loan payments will be due next month.
Here are three steps you can take now to ensure the process of your student loan payments is as smooth as possible
1 – Log in to your Federal Student Aid account
To check your student loan payments balance and verify your loan servicer, log in to your Federal Student Aid account on studentaid.gov, click on the “My Aid” section, and then click on “View loan servicer details.” Make sure your student loan payment contact information is up to date. Millions of borrower accounts changed servicers over the COVID-19 pandemic the Consumer Financial Protection Bureau estimates more than 40% will have a new servicer, and so it is crucial to doublecheck you know who holds yours.
2 – Pick a repayment plan for your student loan payments
While the standard plan for borrowers is a 10-year repayment plan, you may be able to enroll in an IDR plan to lower your monthly student loan payments. These plans base your bill on your income and family size, and the latest and most generous from the Biden Administration is called the Saving on a Valuable Education, or the SAVE plan.
Read Also: What To Anticipate When Interest On Student Loans Resumes On Friday
3 – Review your budget
Another crucial step to take ahead of student loan payments resuming is to review your budget, experts say. This can help relieve some of the “psychological impact” of payments coming due again, says Joseph Catanzaro, a certified financial planner at Oak & Stone Capital Advisors.
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