Federal student loan payments resumed last fall and there is a lot of panic, chaos, and uncertainty months after things started back up. Fortunately, experts have some helpful tips to keep things steady.
Here’s Five Fast Facts On Student Loan Payments Restarting:
- 🏦 Know Your Loaner - Your loan servicer may have changed during the pandemic due to mergers, acquisitions, closures, alien invasion, or supervillain takeover. Log on to the student aid website and find out who runs what.
- 🛣️There’s an On Ramp - Before repayments started, the Biden administration announced a 12-month “on ramp” to repayment where borrowers are protected from the consequences of late or missed payment. It expires September 30.
- 💳 Keep Checking Your Credit - An on ramp doesn’t mean there won’t be errors. Get a free copy of your credit report every week. If you find an error, bring it to your creditor’s attention immediately. They have only 30 days to investigate your complaint.
- 💸 Make Your Payments - The on ramp also doesn’t mean you don’t have to make payments. While the negative information won’t be reported for those 12 months, the positive information will. If you want to maintain a strong credit score, consistent payment is the key.
- 🏦 Autopay - If you sign up for autopay, your lender will knock a quarter percent off your interest rate. That’s not a bad deal because it can add up quickly and allow for a quicker payoff.
🔥Bottom line: It’s wild to think the pandemic started almost four years ago now. Things certainly have changed in many ways, but student loans have been patiently awaiting their moment and it’s here now. It’s better to get with the program and be smart rather than try to fight it.
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