The Return of Student Loan Payments: Must-Knows for Borrowers

The Return of Student Loan Payments – Alright, folks, the time has come to face the music – if you’re one of the millions of Americans with student loans, you’re in for a reality check. The pause on student loan payments, which started in March 2020 thanks to the pandemic, is ending on October 1.

The Return of Student Loan Payments: Must-Knows for Borrowers

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A Pause No More

Initially, this pause gave some much-needed relief to borrowers struggling with their loans. But earlier this year, Congress decided, “Enough’s enough,” and they said no to further extensions. So, here we are, on the brink of payments making a comeback.

No More Waiting

Now, some of you might’ve been holding your breath, wondering if a government shutdown would swoop in and save the day. Well, the Education Department wants you to know – that ain’t happening. Loan servicers are ready to roll, and Congress even voted to keep the government funded, at least for the time being.

So, when do you need to whip out your checkbook or set up those online payments? Federal officials say it’s a go for October. You should’ve gotten a heads-up at least 21 days before the due date. If that billing statement didn’t land in your mailbox, you’ve got some calling to do. Get in touch with your student loan servicer pronto.

The Interest is Brewing

Here’s the kicker – while payments officially restart in October, interest has been doing its thing since September 1. So, that loan balance might’ve grown a bit since you last looked at it.

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Who’s Your Servicer?

Also, if you haven’t been keeping up, your loan servicer might’ve changed during the pandemic. The folks managing your loan before March 2020 might not be the same ones handling it now. You can find out who’s in charge by logging into your Federal Student Aid account and hitting up the “My Loan Servicers” link.

And if you’ve changed your address recently, don’t forget to give your loan servicer the memo. They need to know how to reach you. It’s been over three years since loan payments were due, and your contact info might need a refresh.

Plan It Out

Now, when it comes to paying back those loans, remember that the standard repayment plan is what usually gets slapped on. But it might not be the smartest move for your wallet.

There are other options out there, like the Saving on a Valuable Education (SAVE) plan, cooked up by the Biden administration. This one’s all about income-based repayments, and it could mean a significant reduction or even waving goodbye to your monthly payments. Check it out on the Education Department’s website.

So, there you have it – the lowdown on what’s happening with your student loan payments. Get ready, get organized, and explore your options. It’s time to get back on that repayment train.

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