As the COVID-era federal student loan repayment pause ends, the news about loan forgiveness and payments resuming has been complex and confusing. Check out the information below to be sure you understand your repayment obligations and options.
Tips and Tricks for Preparing to Resume Payment
Frequently Asked Questions
Federal Student Aid offers resources for borrowers as federal student loan repayment begins:
Borrowers in repayment on any BU-funded loan remit payment through Heartland ECSI. Borrowers with concerns about paying should contact Student Loan Accounting for options.
Private or Other Loans
Borrowers should contact their loan holder for questions about repayment or payment remediation.
Other Repayment Tips
Remember that waiting will cost you
Don’t be fooled by the six month grace period you get before you have to start making payments. While you are not required to make payments during the grace period most loans will still be accruing interest.
Refinance and consolidate
Investigate consolidating your loans and refinancing them. You might be able to get a lower rate or longer term — either of which could result in lower monthly payments.
Also, refinancing generally makes you ineligible for income-driven repayment plans and public service loan forgiveness programs.
Accelerate your payoff
Once you’ve organized, reduced, refinanced, and consolidated — start paying your loans off. You can speed things up by dedicating a small amount — $10 a month is fine, to start — as an additional payment. Be sure to inform your servicer that this is to be applied to the loan’s principal — not to your next payment.
When money is tight, you can nix the additional payment. But otherwise, try to stick with it.
Use the Consumer Financial Protection Bureau’sStudent Debt Repayment Assistantto guide you through your federal, state and private loan repayment options.
UseTISLA(The Institute of Student Loan Advisors) for free expert student loan repayment advice and dispute resolution.
