Ready or Not, The Student Loan Payment Pause is Coming to an End: 7 Must-Do’s to Secure Your Financial Well-being

🌟 Hey there, money-savvy friends! 🌟 It’s time to talk about something important: those pesky federal student loans that have been on hold since the COVID-19 pandemic started. Brace yourselves, because starting September 1, we’ll have to resume making payments on them. πŸ˜“

During the payment pause, we enjoyed the sweet 0% interest rate, but now we’re going back to the current fixed rates. Some experts have noticed that some borrowers might not be fully prepared for the repayment phase, especially those banking on loan forgiveness. No worries, we’ll handle this together! 😬

So, let’s start with some simple steps to make this transition smoother than ever, shall we?

1️⃣ Find Your Loan Servicer: During the pause, some loan servicers merged, and your loan might be managed by a new one. Check your emails and login to the Federal Student Aid website to confirm your current servicer’s details.

2️⃣ Budget Like a Pro: A budget is your best buddy when it comes to financial planning. Assess your income sources, fixed expenses like rent and car payments, and variable costs like groceries and entertainment. Then, identify those extra expenses you can trim down a bit. Your future self will thank you! πŸ’β€β™€οΈ

3️⃣ Explore Forgiveness Programs: Sure, we’ve heard about the recent Supreme Court decision striking down the Biden Administration’s plan for loan forgiveness up to $20,000. However, you may still qualify for a new federal student loan relief program that was just announced July 14, known as the IDR waiver, or IDR Account Adjustment. If you’ve been repaying your loan for 20 or more years, you may qualify. Notices went out to about 800,000 recipients but more are on the way so keep an eye on your mailbox!

Although the one-time forgiveness plan is off the table, don’t lose hope if you’re a more recent borrower. If you work in qualifying government or nonprofit organizations, you might still be eligible for loan forgiveness through other programs like Public Service Loan Forgiveness (PSLF). Check it out! 

4️⃣ Explore Income-Driven Repayment: Low income? No problem! Income-driven repayment plans got your back. With payments as low as 10-20% of your discretionary income, you can keep slaying your goals while keeping your budget happy. But hey, keep an eye on the long game, as it might take longer to clear that debt. No stress, though – we’re here to cheer you on! πŸ™ŒπŸŒŸ

5️⃣ No Pay, No Worries: Missed some payments? To ease the transition, the Education Department is introducing a one-year “on-ramp” period starting October 1, 2023 to Sept. 30, 2024. This means missed or late payments won’t lead to negative credit reporting or default. πŸŽ‰ So no stressing about a slip-up here and there

6️⃣ Keep an Eye on New Plans: The government has introduced the Saving on a Valuable Education (SAVE) plan, which can provide significant savings for some borrowers.  For peeps making $32,800 or less (or $67,500 for a family of four), monthly payments are slashed to $0! πŸŽ‰πŸ’Έ You heard that right – ZERO! And even if you earn more, you can still SAVE big on your payments. 

7️⃣ Boost Your Income: If you’re worried about making ends meet, consider finding extra income streams. A side gig or part-time job can help you stay afloat while tackling those loan payments.

Remember, Wellthi is your ultimate partner in this financial adventure! We’ve got the resources, tools, and support you need to thrive. Together, we’ll crush those loans, save for the future, and celebrate every milestone.πŸŽ‰ Your financial success is our joy, and we believe in you, fabulous friend!πŸ’• Let’s unleash the #FinancialWarrior in you!🌟

Stay inspired, stay savvy, and stay tuned for more amazing tips and tricks from Wellthi – your bestie for all things financial! πŸ€—βœ¨

DIG DEEPER

  1. Federal Student Aid Website: Stay up-to-date with all things related to your federal student loans by visiting the Federal Student Aid website. You can find your loan servicer, access important documents, and get the latest updates on repayment options. πŸŽ“πŸ‘‰ studentaid.gov
  2. Public Service Loan Forgiveness (PSLF) Help Tool: If you’re looking into PSLF, use the PSLF Help Tool to see if your employer qualifies and get a head start on that loan forgiveness journey! πŸŒŸπŸ‘©β€πŸ« Find it at https://studentaid.gov/pslf/
  3. SAVE Repayment Plan Info: Want to know more about the exciting Saving on a Valuable Education (SAVE) Plan? Get all the deets and eligibility info on the Federal Student Aid website. It’s time to save big on those payments! https://studentaid.gov/announcements-events/save-plan
  4. IDR Waiver Account Adjustment: How to Qualify and Get Your Loans Forgiven Faster.https://www.studentloanplanner.com/idr-waiver-how-to-qualify/

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