Remember student loans? How to prepare for the end of the pandemic forbearance | Business
PHOENIX – (BUSINESS WIRE) – December 14, 2021–
After nearly two years of pandemic relief, federal student loan payments are expected to resume in February. Now is the time for borrowers to reassess their budgets and familiarize themselves with their payment plans.
“Federal forbearance has provided much needed relief for student loan borrowers during the pandemic, but it was always meant to be temporary,” said Jessica Ferastoaru, student loan advisor at Take Charge America, a national loan counseling agency. credit and nonprofit student loans. “With payments resuming in a few weeks, borrowers should quickly create a game plan that works for them, taking into account loan status, employment and income. “
Ferastoaru shares options that borrowers should consider as the end of forbearance nears:
- Confirm your provider (s): With several manager changes during the forbearance period, the company that manages your loan may have changed since you made your last payments. Visit studentaid.gov to confirm your loan officers.
- Explore Income-Based Repayment Plans (IDRs): If your income has declined in the past two years, request an IDR plan at studentaid.gov to request a lower payment. IDR plans cap payments based on income and family size, adjusting as circumstances change. You must renew your certification annually. If you are already on an IDR plan, your recertification date may have been extended during the forbearance period. Contact your repairer to confirm.
- Find out about the other options: If you don’t qualify for an IDR plan and can’t afford to pay, ask your agent for additional options such as deferral or greater forbearance. In either case, payments are suspended, but with a deferral, interest on subsidized loans can be waived, while interest will accrue under forbearance.
- Manage delinquent loans: To avoid wage garnishment or tax refund offsets, work to get out your defaulted loans. Options include consolidating or rehabilitating loans. Consolidation combines your loans into a brand new loan that you agree to repay under an IDR plan. After three consecutive payments, you can change your plan, if you wish. As part of the rehabilitation, borrowers agree to make nine consecutive payments on time over a 10-month period to get out of default. If your loans are currently being pardoned, make sure you don’t miss your first payment after the forbearance. If you miss more than one rehabilitation program, you may be removed from the program.
- Restore automatic payment: If you had automatic payments in place before pandemic forbearance, contact your service agent to confirm if you need to re-register to make sure you don’t miss your first payment. Your account status will change from “current” to “past due” after a single missed payment on a federal student loan. If your loan becomes 90 days past due, it can negatively impact your credit.
For step-by-step advice on student loan repayment options, check out Take Charge America’s student loan counseling services.
About Take Charge America, Inc.
Founded in 1987, Take Charge America, Inc. is a non-profit agency providing financial education and counseling services, including credit counseling, debt management, student loan counseling, housing counseling and bankruptcy advice. He has helped nearly 2 million consumers nationwide manage their personal finances and debt. To learn more, visit www.takechargeamerica.org or call (888) 822-9193.
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CONTACT: Tim Gallen
KEYWORD: UNITED STATES NORTH AMERICA ARIZONA
INDUSTRY KEYWORD: PROFESSIONAL SERVICES EDUCATION FINANCE OTHER CONTINUING EDUCATION UNIVERSITY
SOURCE: Take Charge America, Inc.
Copyright Business Wire 2021.
PUB: 12/14/2021 11:49 a.m. / DISC: 12/14/2021 11:49 a.m.
Copyright Business Wire 2021.