How to prepare financially for student loan repayment?

How to prepare financially for student loan repayment?

Student loan interest will resume starting on Sept. 1, 2023, and payments will be due starting in October. Student loan borrowers will be notified well before payments restart.

Here are three ways to prepare:

1. Make sure your contact and bank information are up to date.

2. Sign up for autopay.

3. Prepare your budget now before your payments restarts.

What to Do if You're Worried About Making Your Payments When the Pause Ends???

Don't freak out if your situation has changed as a result of the pandemic and you fear that you won't be able to make your previous monthly payment. Although your loan may continue to accrue interest, there may be ways to extend a student loan suspension in your particular circumstance. ***But if possible, please try to avoid these choices unless it's your last option.

If you are experiencing financial difficulty, are enrolled in school at least part-time, are unemployed, or meet other criteria, you may be qualified for a deferment. Depending on the type of deferment, the deferment term, which can last up to three years, does not accrue interest for various types of loans.

If you're having trouble paying your monthly payments due to financial difficulties, medical expenses, or other reasons your loan servicer deems acceptable, another choice is to submit an application for a forbearance. Interest will keep building up on your remaining loan balance during a forbearance. Forbearances are frequently only granted for three years.

Don't simply stop making payments; doing so will result in your loans going into default.

However, if you can reduce your spending, raise your income, or do both, that would be preferable! The more you tackle and pay off your debt now, the less you will have to worry about having debt in your future!