Screenshot 2023-07-26 160659

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. 😓

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! 💁‍♀️

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! 🙌🌟

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. 🎉 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! 🎉💸 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.🎉 Your financial success is our joy, and we believe in you, fabulous friend!💕 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! 🤗✨


  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. 🎓👉
  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! 🌟👩‍🏫 Find it at
  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!
  4. IDR Waiver Account Adjustment: How to Qualify and Get Your Loans Forgiven Faster.

Ask Wellthi: Biden’s Student Loan Cancellation Plan Just Got Canceled. What Happens Next?

Good money vibes, Wellthi warriors! Time to fire up the neurons and start our day, with our favorite AI financial guide, Ask Wellthi. Think of it as the caffeine shot to your investment knowledge, minus the mid-morning crash.

In a high-stakes game of ‘Deal or No Deal’, President Joe Biden got a stern “No Deal” from the U.S Supreme Court Friday on his plan to nix up to $430 billion in student loan debt.

It’s like a favorite show just got canceled on a cliffhanger for the 26 million Americans who applied for the program, which offered forgiveness of up to $10K for people earning under $125K and $20K for low income Pell grant recipients. 

Both Trump and Biden had paused student loan repayments under a 2003 federal law known as HEROES (who comes up with this stuff?) allowing the Secretary of Education to modify student loans during a crisis, e.g. COVID. Biden had tried to go one better, reducing or eliminating the loans, rather than just delaying repayment.

Six states sued to block the plan, forcing the program to go on pause in November pending Supreme Court review, where it fell in a 6-3 vote this week. 

In the decision, Chief Justice Roberts wrote the proposed plan went too far, comparing the fate of the HEROES Act under Biden’s modifications to that of the aristocracy in the French Revolution. (No joke, look it up.)

Biden’s grand scheme had aimed to cancel a slice of the $1.6 trillion in federal student loan debt – a promise that stirred up more drama than the release of the last Game of Thrones book. Critics (mainly Republicans) called it a power trip and an unfair boost for college-educated borrowers. There’s always that one person in the group project who thinks they know better, right?

Now after years of respite, the peasants (student loan borrowers) may have to start paying up again, and it doesn’t look pretty. Amid economic uncertainty over inflation and stock market volatility, jobs have remained plentiful and consumer spending has continued to be strong. Now billions of dollars that might have gone for a vacation or a new car will be funneled into loans and interest payments for years to come, potentially dragging down the economy, as well as forcing austerity on millions of indebted Americans.

But it may not be over yet. It’s reported that Biden is busy prepping for season two. Let’s hope for some character development and fewer cliffhangers this time around.

So, Wellthi warriors, let’s take this as a reminder that financial planning can sometimes feel like navigating a TV drama – full of unexpected twists, but always an interesting ride. And with Wellthi GPT, you’ve got the perfect binge-watching buddy who won’t fall asleep halfway through the episode. Onwards and upwards, team!


Supreme Court Blocks Biden’s Student Loan Forgiveness (Reuters)

US Supreme Court Rules Against Biden’s Student Loan Relief Plan (The Guardian)

Supreme Court Strikes Down Biden’s Student Loan Forgiveness Plan (CNBC)


Talk to a Financial Advisor at Citizens Bank


Financial Confessions 2: Overheard on the Web

Should Reddit user TheLemonWedges pay off student loans as fast as possible or spread it out?

Welcome to the latest edition of Financial Confessions: Overheard on the Web, a new feature where we share real stories from real people facing some serious financial conundrums. So grab your coffee, sit back, and let’s dive into this week’s tale from the web.

Reddit user TheLemonWedges has a problem. They:

  • Just graduated college with $200k in student loans
  • Have a salary of $80k pre-tax in a lucrative field
  • Have only major one expense right now, rent at $1350
  • Spend $200-$300 a month on food, and don’t go out much
  • Have a company 401k with matching
  • Are opening a Roth IRA and planning to contribute to it monthly

Should TheLemonWedges pay down the debt as fast as possible, or spread it out to enjoy life a bit and sock away more retirement savings?

Wellthi GPT says:

So you just graduated college, and you’re armed with a shiny degree and a whopping $200k in student loans. Hey, no judgment here! We’ve all made decisions that make us go, “What was I thinking?” But fear not, because you’re not alone. Together, we’ll figure this out!

Now, let’s break it down. On one hand, paying off your loans faster than a cheetah on rollerblades may sound like the way to go. You’ll be living that #frugallife for a while, but hey, sacrifices can lead to sweet rewards. Imagine the moment you make that final payment and bid adieu to those loans forever. It’s like acing your final exams or finishing a marathon (but with less sweat, hopefully). The relief and financial freedom that come with being debt-free are nothing short of exhilarating!

On the other hand, taking a longer payment plan allows you to spread the financial love and free up some cash for other adventures. You’ll have the flexibility to contribute more to your retirement accounts, like a financial wizard planning their magical kingdom. Plus, having some spending cash for hobbies, travel, and epic avocado toast is always a bonus. Sure, you might end up paying more in the long run, but think of it as investing in your future self, like swiping right on your financial dreams.

So, how do you make the best choice for your situation? It’s time to channel your inner financial genius and consider a few key factors. First, take a close look at the interest rates on your student loans. If they’re soaring higher than your favorite pop diva hitting those high notes, it might be wise to prioritize paying off the loans early. By tackling high-interest debt head-on, you can save a bundle in the long haul.

Next, evaluate your overall financial stability. Are you feeling confident in your job security and emergency savings? If you’ve got your financial safety net in place, you might feel more comfortable allocating a larger chunk of your income to loan repayment. It’s like having a superhero cape of financial security, ready to conquer any unexpected expenses that come your way.

Remember, a little balance goes a long way. While it’s important to be financially responsible, don’t forget to live your best life in the present. Allocate funds for both loan repayment and personal enjoyment. After all, saving is like studying for mid-terms—it’s no fun until you see the results.

If you find yourself still waffling between options, consider consulting with a financial advisor. They can provide personalized guidance based on your specific situation, helping you chart a course toward financial success. Think of them as your financial matchmaker, guiding you toward that perfect money-life balance.

Remember, the journey is just as important as the destination, so embrace it with open arms and an open wallet. Cheers to your future