Done, done, go…student loan payments resume!
July 28, 2022
For the past 28 months, student loan interest has been 0% and payments have been suspended. But the COVID-19 relief for student loan borrowers ends on August 31, 2022. If you’ve taken advantage of the forbearance due to COVID, now is the time to make sure you’re ready to resume payments. Here are some tips to make sure you’re all set!
- Update your contact information– You may not have been in contact with your loan officer for a while. Make sure they have your current contact information. Confirm that you can log in to your student loan dashboard. Also, if you used auto debit to make payments before the pandemic, you may need to go through a process to set it up again.
- Confirm the amount of the first payment and the payment date– Your first payment is most likely not due until August 31, 2022. You will have at least 21 days to make the payment. Make sure you review and understand the terms of the loan: monthly payment, interest rate, number of payments made, repayment plan, and remaining term.
- Adjust your budget– Did you redirect the money you used to pay the loan somewhere else? Now is the time to make sure you have the funds to make your monthly student loan payments. Review your budget and adjust your spending or savings so you can make your payments on time.
- Review your student loan repayment plan– Now is a good time to review your repayment plan. Has anything changed with your employment that would change your eligibility for the State Student Loan Forgiveness Program? There may be a repayment plan that fits your current situation better.
If you are participating in the Public Student Loan Forgiveness (PSLF) program, be sure to qualify all of your employment by 10/31/2022, when the limited-time PSLF loan forgiveness opportunity expires. The ability to waive the time-limited PSLF relaxed the eligibility rules for PSLF. Don’t forget to take advantage of this opportunity to potentially receive payments that previously could not qualify for a loan.
There is some speculation that the grace period may be extended again. In addition, the Biden administration promises to provide some level of targeted student loan forgiveness. We will have to wait and see.
In this day and age of uncertainty surrounding student loan debt, the best course of action is to make a plan that takes into account all possible scenarios. If you need help navigating your student loans, don’t hesitate to reach out.