During the Covid-19 pandemic, President Biden made a quick decision. He wanted to help students worried about paying their student loans back.
So, he went ahead and extended the freeze on federal student loan payments until September 30, 2021.
With September quickly approaching, there are a few things you need to know.
If you’re wondering how to manage an added bill, especially post-pandemic, there are ways.
Today, I’m sharing short-term and long-term steps to help you pay your federal student loans without added worry or anxiety.
Payments Start on October 1, 2021
Before student loan payments start again, you need to get prepared.
The first thing to do is to contact your loan(s) service provider(s). Figure out the terms around your student loan(s).
What does that mean? Check out these tips below.
1. Advocate for Yourself
With the freeze lifting this September, it’s not too early to contact your loan service provider.
Studentaid.gov has recommended that you reach out to your student loan service provider sooner rather than later.
2. Calculate Your Monthly Payments
Figure out your potential monthly payment. Knowing what you’re expected to pay before September 30 gives you space and time to strategize.
For example, have your financial circumstances changed after the pandemic? Let your loan provider know. You may qualify for the Income-Driven Repayment Plan (IDR). If you’re already on it, they might adjust it depending on your situation.
Did you get a new job for the government or a nonprofit during the freeze? Let them know. You may be eligible for the Public Loan Service Forgiveness Program (PLSF). This is the time to negotiate with your student loan service provider(s).
3. Budget Expenses and Payments
Next, start or continue budgeting. It’s essential to create a budget that will allow you to accommodate your new monthly student loan payment.
Remember to keep in mind to budget money for emergency savings. Having a little bit of money stashed for a rainy day emergency can make a huge difference in how a tight situation may play out.
Extending Federal Student Loan Payments
Ensure to stay plugged into government movement around student loan payments, both on the federal and state levels.
I understand if you’re someone that tries to steer clear of news about politics. It can be stressful. However, it’s essential, especially when it comes to your money. The Student Borrower Protection Center is a great place to determine what’s going on for future student loans.
Whispers in the federal government have many of us hoping that the student loan payment freeze extends past September, but as of right now, there’s been no new announcements.
Even if they extend the freeze, it might be too close to the September 30th deadline to know for sure. There were whispers once before.
For example, once upon a time, there were whispers about canceling student loan debt under $50,000. Do you remember that?
But here we are with no cancellation insight.
While loan cancellation hasn’t happened yet, we shouldn’t stop advocating for it. In recent months there have been significant strides in our government as a whole about the future of student loans and their repayments.
Bahar Akman, Executive Director of Inversant’s sister organization, the Hildreth Institute, is part of a 125 organization coalition advocating for delivery on promised debt relief.
Before the pandemic struck, tens of millions of borrowers struggled to navigate a badly broken student loan system. America’s student debt crisis wreaked havoc on the financial lives of families across the country, despite payment relief and debt forgiveness programs that promised that these debts would never be a life-long burden. The Biden Administration must repair the damage caused by decades of government mismanagement and industry abuses before borrowers are forced back into the broken student loan system.
Please read the press release from the Student Borrower Protection Center outlining their petition to President Biden to learn more.
Now that we know why it’s essential to prepare for repayment of student loans after September, it’s time to step into action.
Want to learn more? Join us on July 22nd when we talk through an amazing fun-packed night of games, laughter, and friendly competition for a great cause.
In 2021, we’re committed to supporting the new-traditional student. Come prepared to put your game hat on while opening your heart and mind to the fastest-growing segment of learners. Make a donation, make a difference, and relive your favorite old-school TV game shows on The Inversant Game Show Extravaganza.