Do 3 Things For Your Student Loans Right Now
Starting next year, there will be no more student loan relief. Congress gave us this option in March 2020. The temporary student loan forbearance will end on January 31, 2022.
That means that you must start paying your loans again on February 1, 2022. If you pay for 22 months of optional federal student loans, then you can get your first federal loan payment in almost two years starting on February 1, 2024!
Determine if you qualify for student loan forgiveness
You could get your student loans cancelled. President Joe Biden has already cancelled $11.5 billion of student loans, this month alone he cancelled 2 billion dollars worth. There are several different opportunities for student loan forgiveness- find out if you qualify!
- Income-driven repayment plans: When you make lower income.
- Public service loan forgiveness: For people who work in public service jobs.
- Total and permanent disability: If you have a medical condition that makes it impossible for you to pay back your loans.
- Borrower defence to repayment: You can ask for this if your school did something wrong to hurt your chances of getting a good job after graduation.
If you want to get student loan forgiveness, make sure that you apply for a waiver. If you have any payments that were not eligible for student loan forgiveness, and if the date has passed already, then you can still count them and get closer to getting your loans forgiven.
Find out if you’re getting a new student loan servicer
The company that collects your payments and helps you with your student loans is called the “student loan servicer.” Right now, there are more than 16 million people with student loans.
There is a new company that will be your new student loan servicer from January 1st of next year. Navient will stop being the servicers of federal loans on December 31st and Maximus will take over as your new servicers.
The U.S. Department of Education may send you a letter if your student loan servicer changes. Your interest rate and the terms of your loan should stay the same but make sure to update your payment information so that payments are sent to the new servicer.
Consider student loan refinancing
Student loan refinancing is a good way to save money on your student loans. With student loan refinancing, you can get a lower interest rate or monthly payment, or both.
If you have stopped paying your student loans for a period of time because you could not afford them, then after that time period ends, it’s a good idea to refinance your student loans so that they are cheaper and more affordable for you.
This student loan refinancing calculator shows you how much money you can save when you refinance your student loans. You can see how much money you will save with this tool.
You can refinance your loans. You need a 650 credit score and to be employed or you have a job offer. The rates are very low and start at 1.74%. If you think that you will need an income-driven repayment plan, forbearance, deferment or public service loan forgiveness, then you may not want to refinance your federal loans.
You can get a new private loan when you refinance federal loans. You may want to do this because it will have a lower interest rate, and you will save money on your student loans.
You have to pay off student loans. You have 3 ways to pay them. Smart things are:
Student loan refinancing means you can get a lower interest rate and a lower monthly payment. You still have the same amount of money in your account, but you pay less each month. Income-driven repayment plans mean that if you have a low income, then your monthly payments will be lower. Public service loan forgiveness is for people who work in public services and want to take a student loan out for their education.
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