MMonthly student loan repayments will resume January 1, 2023 after the Covid-19 emergency assistance is scheduled to end on the last day of 2022.
Americans have a chance to take a few steps before then, so they can be ready to start making their payments again and might even make them more affordable.
How to prepare for the restart of student loan repayments
Those who are wondering about restarting their student loan payments should first check to see if their contact information is current and up-to-date both on the loan servicer’s website as well as in their StudentAid.gov profile.
Once payments have resumed, the loan officer will contact each loan recipient and send them a billing statement or equivalent notice showing the payment due date, upcoming interest, and total payment amount.
The due date of the billing statement shall not be less than 21 days from the date the sender issued the statement.
Student borrowers should contact their loan officer to find out their upcoming payment amount or call 1-800-FED-AID (1-800-433-3234) or connect online.
The US government is also suggesting that all student borrowers review their student loan and adjust it to the best repayment option that suits them as the Covid-19 pandemic may alter their financial situation.
For those who want to lower their monthly payments, there are also options available, with borrowers even able to apply to be placed in the plan that gives them the lowest monthly payment amount.
One option is to consolidate the individual’s federal student loans and thus reduce the monthly payments, but there are advantages and disadvantages to consolidating it and each borrower should assess the situation.
Asking the lender for short-term relief is another last resort tactic that many may choose to use, but this does not necessarily mean that interest will also be suspended, so check with your lender for requirements and eligibility.