The Department of Education announced that the student loan payment pause for federal student loan will continue through Jan. 31, 2022. After nearly two years of payment relief, student loan payments will return.
Due to the CARES Act, borrowers received the forbearance automatically, and the interest rate on their balances was set to 0%. The student loan payment pause allowed time for borrowers to deal with possible job changes/losses, or to accumulate emergency savings. Here are five ways you can successfully prepare for the return of student loan payments.
Your payment will be due no sooner than 21 days after your servicer sends the billing statement. To find out your upcoming payment amount, log in to your loan servicer’s website. If your servicer doesn’t provide this info online, you can call or email your servicer.
If you can’t log in, call 1-800-4-FED-AID (1-800-433-3243) for loan servicer info.
5. If necessary, request short-term relief.
Can’t find a repayment plan that works for you? You can request a deferment or forbearance to temporarily pause or lower your payments. You can first use a tool such as the Loan Simulator on studentaid.gov to learn how this short-term relief will affect your loans and loan payments. Then contact your loan servicer to request a deferment or forbearance.
Reminder: Interest can still accrue during deferment or forbearance. Loan forgiveness options such as Public Service Loan Forgiveness or IDR plan forgiveness are also affected by deferment and forbearance. What are some ways that you are preparing for the end of the student loan payment pause?
Need more information about student loans? Download our free Ultimate Student Loan Guide.
By Candice Davie
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