Do these 3 things for your student loans now.
Here’s what you need to know.
With the coming end of student loan relief, it is time for you to take control of your student loans. The temporary student loan forbearance – which Congress created in March 2020 in the wake of the Covid-19 pandemic – will end on January 31, 2022. This means that student loan borrowers will resume federal student loan payments at their usual interest rate as of February 1, 2022. (Prepare for the end of student loan relief). After 22 months of optional federal student loan payments, millions of student loan borrowers will make their first federal student loan payment in nearly two years. Here are 3 things to do right now.
1. Find out if you qualify for your student loan waiver
Find out if you qualify for your student loan waiver. President Joe Biden has canceled $ 11.5 billion in student loans since becoming president. This month, for example, the US Department of Education said $ 2 billion in student loans would be canceled within weeks. There are several possibilities for student loan forgiveness, including:
- Income-based repayment plans
- Cancellation of public service loan
- Total and permanent disability
- Defense of the borrower on repayment
If you’re looking for a utility loan forgiveness, be sure to get a student loan limited forgiveness waiver. (How to request a student loan discount during the Biden administration). Why? If you have previous student loan payments that were not eligible for a student loan forgiveness, you have until October 31, 2022 to get “credit” for those payments and get closer to your student loan cancellation. . (Here’s who qualifies for the student loan waiver right now).
2. Find out if you’re getting a new student loan service
If you’re one of over 16 million student loan borrowers, you may have a new student loan service next year. Your student loan manager is the company that collects your student loan repayments and acts as a customer service representative for your student loans. Several student loan managers have announced that they will no longer serve federal student loans. For example, Navient will no longer serve federal loans at the end of the year and instead Maximus will become your new federal student loan manager. (Here’s why Navient abandoned your student loans). The US Department of Education will send you written communication if your student loan manager changes. There is no need to worry if you get a new student loan officer. Your interest rate and the terms of your loan will remain the same. However, be sure to update your automatic payment information to ensure that you send student loan payments (when requested) to your new student loan manager.
3. Consider refinancing a student loan
Refinancing a student loan is a smart way to save money on your student loans. With student loan refinancing, you can get a lower interest rate, a lower monthly payment, or both. Now that the temporary student loan forbearance ends, student loan refinancing can help save you money once student loan payments start again.
This student loan refinance calculator shows you how much you can save when you refinance student loans.
You can refinance private or federal loans, or both. To be eligible you will need a credit score of at least 650, be currently employed or have a signed job offer, have a stable monthly income, and meet other requirements. . Student loan refinancing rates are very low right now, starting at 1.74%. However, refinancing a student loan is not for everyone. If you think you need an income-based repayment plan, forbearance, postponement, or utility loan forgiveness, for example, you might not want to refinance your federal loans. . When you refinance federal loans, you will get a private loan instead. That said, a lower interest rate and savings on your student loans may be more important to you than the benefits available to federal student loan borrowers.
Make sure you understand all of your student loan repayment options. These 3 smart things to do right now for your student loans. Here are some popular strategies for paying off student loans faster: