Best Student Loan Payments Set to Resume: What Borrowers Need to Know When Do Student Loans Resume

Student Loan Payments

Best Student Loan Payments Set to Resume: What Borrowers Need to Know When Do Student Loans Resume

Student Loan Payments

 

When student loans resume is a question that many borrowers have been asking since the COVID-19 pandemic caused the suspension of federal student loan payments and interest accrual. Here is a comprehensive guide to help you understand when your student loans will resume and what you must do to prepare for them.

Background:

 

In March 2020, the CARES Act was passed, which suspended all federal student loan payments and interest accrual through September 30, 2020. The suspension was extended to January 31, 2021, and then to September 30, 2021. This means that during this period, borrowers were not required to make any payments on their federal student loans, and no interest was accruing.

 

When Do Student Loans Resume?

 

As of the latest update, student loan payments are set to resume on February 1, 2022. This means borrowers must start making their monthly payments again, and interest will begin to accrue on their loans. Borrowers taking advantage of the suspension to make additional payments towards their loans should note that any overpayments made during the suspension period will be applied to future payments and not refunded.

 

What Do You Need to Do to Prepare?

 

If you have federal student loans, you need to start preparing for the resumption of payments. Here are some things you should do:

 

  1. Determine your repayment plan: Review your repayment options and choose the best plan for you. Several repayment plans include the Standard Repayment Plan, Income-Based Repayment Plan, and the Pay As You Earn Plan. Each plan has its requirements, so it’s essential to research and choose the one that suits your financial situation.
  2. Update your contact information: Make sure your contact information is current, including your address, phone number, and email address. This is important because your loan servicer will use this information to contact you regarding your student loan payments.
  3. Check your loan balance: Review and ensure you know how much you owe. If you have multiple loans, make sure you understand which loans are under which repayment plan.
  4. Budget for your payments: Review your monthly expenses and determine how much you can afford to repay your student loans. Make sure you include your student loan payments in your monthly budget.
  5. Explore loan forgiveness options: If you struggle to make payments, you may qualify for loan forgiveness programs. Several programs are available, including Public Service Loan Forgiveness, Teacher Loan Forgiveness, and Income-Driven Repayment Forgiveness.

 

Conclusion:

 

The resumption of student loan payments is just around the corner, and borrowers must be prepared. If you have federal student loans, start preparing for the resumption of payments by reviewing your repayment options, updating your contact information, checking your loan balance, budgeting for your payments, and exploring loan forgiveness options. Contact your loan servicer to discuss your options if you’re having difficulty making payments.

 

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