Written By Melanie Lockert
During the COVID-19 pandemic, federal student loan payments and interest rates were set to 0%, in addition to halted collections on defaulted student loans. This time is coming to a close nearly two years later. Student loan payments resume on February 1, 2022.
Having student loan payments restart can be anxiety-inducing and stressful, but we’ve got you covered. Here are resources to start planning for student loan payments with minimal trouble.
If you need help with your student loans…
If you have questions or wonder what to do when student loan payments resume, you don’t have to go at it alone. We’ve put together a handful of resources to help you find out how much you currently owe and the repayment plan you’re on.
You can also research other repayment options that are more cost-effective or aligned with your current financial situation and lifestyle, and get one-on-one personalized help for your unique situation.
Get started with this list of top five student loan resources to know when payments resume.
And if you want a copy of our student loan forgiveness and repayment calculator, check out the button below.
If you’re in a good place, financially, but want to avoid common mistakes…
When student loan payments resume, it can potentially be messy for many borrowers. A lot might’ve changed in the past two years — you might have a new loan servicer or you might assume that auto-debit payments will restart (which isn’t always the case).
To avoid lapses in your federal loan payments or issues with your servicer, make sure to keep your contact and payment info up-to-date. Get ready for the student loan payment restart by avoiding these biggest borrower mistakes.
If you need to find your federal student loan and repayment details…
During a major administrative shuffle, like the automatic federal loan forbearance that’s ending soon, loan status details can get lost or mixed up. To ensure that you have the most up-to-date information about your loan terms, existing student loan balance and repayment history, download your National Student Loan Data System file.
This .txt document is a comprehensive overview of all federal loans you’ve borrowed throughout your entire academic journey. Here’s more on how to find your NSLDS file.
If you can’t afford student loan payments when they resume…
Have the student loan payment and interest rate pause been a godsend so far, but now you’re freaking out about resuming payments? If your income has been affected by the pandemic, you’ve lost your job, or have been a part of The Great Resignation, it’s understandable to worry about your ability to make loan payments.
But you have options! If you can’t afford to make student loan payments when they restart, take immediate action. Proactively finding a solution can help minimize negative effects on your credit history or potential wage garnishment due to default.
Learn what you can do if you can't afford your loan payments.
If you’re pursuing student loan forgiveness with PSLF…
Are you pursuing Public Service Loan Forgiveness (PSLF) and hoping to get your loans completely forgiven, tax-free? If so, you might wonder how the student loan payment pause affected PSLF payments.
Even if you didn’t make a student loan payment during the administrative forbearance, the time counts toward your PSLF eligibility. Ensuring that you actually receive credit for this period helps you work toward loan forgiveness sooner.
Read the steps to confirm that your PSLF payment history is on track after the payment pause ends.
If your servicer is FedLoan Servicing…
If you’re pursuing PSLF, you might’ve heard that the loan servicer that manages PSLF payments — FedLoan Servicing — no longer wants to be part of the student loan game. As such, after its contract ends in December 2021 it’ll no longer be the servicer for borrowers pursuing PSLF.
Accounts held with FedLoan Servicing will transfer to Mohela, another loan servicer. If FedLoan is your servicer, follow this checklist to prepare for servicer changes to ensure a seamless transition toward PSLF with Mohela.
If you’re on an income-driven repayment (IDR) plan…
If you’re on one of four income-driven repayment plans (IDR), you typically need to recertify your income and family size each year. The student loan payment pause gave borrowers a break from this administrative task for nearly two years.
But as student loan payments resume, borrowers on an IDR plan should be prepared to recertify when their loan servicer notifies them of the new recertification deadline.
You don’t have to recertify before the payment freeze is up. But if you’re on Income-Based Repayment (IBR), Revised Pay As You Earn (REPAYE), Pay As You Earn (PAYE), or Income-Contingent Repayment (ICR), you’ll want to get ready to recertify and know how to do it.
As the federal loan payment pause comes to an end, prepare for income recertification with this guide.
If you’re thinking about refinancing your federal student loans when payments restart …
As part of the student loan payment pause, student loan borrowers have benefited from zero-percent interest rates. Now with student loan payments resuming, interest rates will kick in again.
If you have Grad PLUS or Parent PLUS Loans, you likely have a high interest rate. If that’s the case, you consider student loan refinancing when payments restart. But federal student loan borrowers should take precautions before giving up benefits like forgiveness and income-driven repayment, especially if you’re in the public sector or have unstable income.
Under certain conditions, like working for a private employer and scoring a 0% introductory rate, refinancing can be a good option.
Learn about the best time to refinance your federal student loans when student loan payments resume and when to avoid this option, as well as alternatives.
Get one-on-one student loan repayment help
Need more support? You can get one-on-one student loan support that’s customized for your specific goals and needs.
As student loan payments resume, you might feel overwhelmed with the process. We’ll walk with you through the process side-by-side to make sure you feel comfortable with effectively managing your student loans. Reach out for a student loan consult today.
Not sure what to do with your student loans?
Take our 11 question quiz to get a personalized recommendation for 2024 on whether you should pursue PSLF, Biden’s New IDR plan, or refinancing (including the one lender we think could give you the best rate).
