Millions of Americans with federal student loans will have their first payment due in October after a three-year pause.
What can you expect?
- You may have a different loan servicer. Look for postal mail notifications or log into studentaid.gov to confirm your servicer. The Dept of Ed will never call you.
- Be sure your email address and mailing address are updated and match, for your servicer and at studentaid.gov.
- If you were on an auto-payment prior to COVID it has been canceled. Everyone should sign up for auto-payments to receive a reduction in the interest rate.
- Learn about the Saving on a Valuable Education (SAVE) plan. It is an income-driven repayment plan that could lower payments for most individuals. To learn more, visit https://studentaid.gov/announcements-events/save-plan.
- Borrowers earning less than $32,800 individually or $67,500 with a family of four will have a $0 monthly bill on the SAVE plan.
- On the SAVE plan, if you make your monthly payments on time, interest won’t accrue on your student loan balance.
- Certain Parent PLUS borrowers could be eligible for SAVE for a very limited time.
- SAVE and all federal repayment plans including income-based repayment are available now at studentaid.gov and take time to process so be sure to make your first October payment.
Is student loan consolidation, refinancing, or forgiveness right for you?
Every situation is different.
If you have student loan questions or need help figuring out the best repayment options- Contact Liane Crane at The College Dollar – Email: Hello@TheCollegeDollar.com, call (585) 376-2585 or visit www.thecollegedollar.com.
Published in the Mendon Honeoye Falls·Lima·Sentinal