Most federal student loan payments and interest have been suspended since March 2020. After numerous extensions and introduction of a federal student loan forgiveness plan that is currently facing legal challenges, student loan interest will resume on September 1, 2023, and payments will resume starting in October.
What does that mean to federal student loan borrowers, and what steps do you need to take to prepare for repayment? Below are several key items to help ease the stress of restarting your federal student loan payments. For the latest updates, visit the Federal Student Aid website. (Keep in mind that these guidelines apply to your federal student loans only; if you have private student loans, your payments have not been affected and you can access your loan information via your servicer’s website.)
Log in to your student loan servicer’s account to review your loan details and your contact information. Servicers will notify borrowers before payments resume, so it’s important to make sure your contact information — including email address, mailing address, and phone number — is up to date.
Watch for correspondence about exactly when your payments will resume. While payments are slated to resume in October, not all borrowers will need to restart their payments at exactly the same time. There are many factors that affect when your first loan payment will be due, and your loan servicer will communicate those details to you.
Avoid Scams: Review communication about your loans carefully. Unfortunately, many scammers take advantage of borrowers in times like these. Do not provide any personal information via phone or email unless you are certain you are communicating with your loan servicer.
Don’t wait until the last minute. Roughly 44 million borrowers will be resuming payments this fall, and there could be long waits for personal assistance. Take care of as much as possible as SOON as possible to set yourself up for a smooth transition.
Consider Student Loan Consolidation or Refinance. Once you’ve gotten all the pieces in place, you may also want to consider private student loan refinance* to simplify your loan repayment. Both options could potentially lower your monthly payment, and private student loan refinance could help you pay back your loans sooner to save on interest over time.
To learn more about refinancing your student loan, NIHFCU and our partner Student Choice, offers a wide range of student loan refinance options. We also provide many great tools, resources and webinars designed to help you make an informed decision about student loan debt.
