The time has come for a financial transition – federal student loan payments are set to resume after a prolonged deferment period. As this new transition approaches, it’s important to prepare and gather helpful information and strategies to navigate the complexities of student loan repayment.
This comprehensive guide provides insights about federal student loans and the steps you need to ensure a smoother journey toward loan repayment.
Confirm Your Servicer(s)
Due to changes resulting from contract shifts and terminations during the pandemic, your loan servicer(s) might have changed since 2020. It’s crucial to identify who will handle future payments and ensure they possess your updated contact details.
For private loans, refer to communications from your original loan servicer, contact your school’s financial aid office, or access a free weekly credit report at AnnualCreditReport.com. Federal loan details can be verified efficiently by visiting the Federal Student Aid website using your FSA ID.
Evaluate Repayment Options
Life can change significantly in three years. Is your student loan payment still manageable? Utilize the Department of Education’s Loan Simulator to determine the repayment approach that aligns with your goals. Consider factors like lower monthly payments or faster debt payoff. Explore income-driven repayment plans tailored to your earnings that can reduce your monthly burden.
Build Up Savings
Once aware of your monthly loan payment, proactively transfer that sum to a separate savings account each month, starting immediately. By making early adjustments to your budget, you’ll mitigate the initial impact of repayment and establish a consistent saving habit. This approach not only sets the stage for a smoother financial journey but also puts you on the path to achieving your goals with greater confidence!
Assess Consolidation
Depending on your mix of federal and private loans, consolidation might ease your payment burden. Federal loan holders can apply for a Direct Consolidation Loan, combining loans at no cost and typically completing the process in under 30 minutes. Private education loans can also be refinanced through credit unions, banks, or online lenders.
Seek Assistance
Feeling overwhelmed by the repayment prospect? You don’t have to figure it all out on your own! Reach out to your financial institution for available services, or take advantage of complimentary student loan counseling through GreenPath Financial Wellness. Their counselors can analyze your situation and create a customized repayment plan according to your needs.
Equip yourself with knowledge and strategies to manage your student loan repayment effectively. Remember, you’re not alone in this journey — our friends at GreenPath are here to support you every step of the way. Take control of your financial future by making informed choices starting today!
Access Greenpath’s Recorded Webinar on Student Loan Repayment
