During the coronavirus pandemic, student loan payments were halted as part of the U.S. response. As the country recovers, payments are expected to resume at some point this year.
If you have student loans, here’s what you need to know.
“In the years since payments have been suspended, some significant things may have changed with you and your vendor,” said Barry Glassman, with Glassman Wealth Services.
Glassman said many loan companies since 2020 exited the loan servicing business, which means your payments will not go to the same place. He recommends looking at your last statement or calling your loan company to ensure you are sending your money to the right place.
Glassman said borrowers should also check information with their provider to ensure addresses and bank account numbers are correct.
In speaking with loan companies, borrowers may find some ways to change the terms of their loan in order to save money.
“Learn more about your current interest rate and options to refinance to a lower rate, fix the rate or extend the term,” he said.
Glassman said options may also include consolidating a loan or even signing up for an “income-driven repayment plan.” which will modify payments based on how much money you earn.
With the fight in the Supreme Court over loan forgiveness surrounding only federal loans, Glassman said with other lenders, there may be some forgiveness options available, especially some people who work in public service careers.