October 18, 2023 • 4 mins
If you’re dealing with student loan debt right now, you’re not alone: According to the Federal Reserve, student loan borrowers in the US owe more than $1.7 trillion to federal and private student loan providers1. Although the federal government paused student loan repayments during the COVID-19 pandemic, payments have now resumed — and that’s why paying off your student loans is more important than ever. Not only will paying off your loans help you save money on interest payments, you’ll have more financial freedom to buy a house, start a business or save for retirement. Less student loan debt also means a better credit score and, even better, less stress in your life.
Here are some student loan tips to help you pay them off faster, as well as details about the end of the COVID-era student debt payment pause.
Try setting a goal for how long you want to take to pay them off or choose a student loan repayment plan that fits your budget.”
The US Department of Education suspended student loan payments, ended collections on defaulted loans, and stopped charging interest on federal student loans in March 2020 due to the COVID-19 pandemic. After several extensions, interest on student loans will resume September 1, 2023, meaning that borrowers with federal student loans will be required to make payments again starting in October 2023. (Because interest accrued on some loans during the payment pause, some monthly payments may increase.)
To prepare for student loan repayments to restart, visit StudentAid.gov to learn how to update your contact information, calculate your payments, find your loan servicer, and see if you qualify for forgiveness programs.
If you’re unable to make payments, you can contact your loan servicer to discuss your options. You may be able to enroll in a repayment plan with lower monthly payments or request deferment or forbearance.
As noted above, the US Supreme Court recently ruled against an attempt to cancel $430 billion in student loan debt, but there are new opportunities available, such as the SAVE Plan. Learn more about the new SAVE Plan and how it can potentially lower your monthly payment if you qualify.
As you work on paying off your loans and exploring your options, beware that fraudsters are out there, even in unexpected areas like student loans. Learn how to avoid student loan scams.
Looking for options to refinance your student loans? Learn how to avoid student loan scams in your search for refinancing.
You’ve graduated and now it’s time to begin paying off student loans. Find out what you need to know about your loan repayment options from the experts at Patelco!
Saving for college? Understand the tax-advantaged options, how they affect financial aid so you can determine the best way for you to save for college!