As a result, these borrowers may need to find out who their new servicer is, in addition to creating new logins with their new servicer and signing up for automatic payments again.
WHAT TO DO IF YOU’LL STRUGGLE WHEN STUDENT LOANS RESUME Although this report paints a bleak picture of what’s to come in a few months, student loan borrowers still have time to get ahead of payments and make a plan. Making a plan will be crucial, since the consequences of not paying your bills when they resume can be severe: It could lead to student loan default, a damaged credit score and seized paychecks. Here are a few steps you can take today to set yourself up for success and avoid missing payments.
If your income fell, or you’re already struggling with other bills An income-driven repayment (IDR) plan can cap your monthly student loan bills at a set percentage of your income and erase remaining student debt after you make payments for a set number of years. You could owe as little as $0 per month. To sign up, contact your student loan servicer. You can submit paperwork now so that you’re set to go into an IDR plan when payments resume. If your servicer has switched Your federal student loan servicer landscape may have changed over the past few years. You’re supposed to get a letter or email from both your old and new servicer if this happens, but you may have missed a notification if you moved, for example. If you’re not sure who your servicer is, log in to My Federal Student Aid using your FSA ID to find out. There, you can see your current servicer, view loan details, apply for a direct consolidation loan or sign up for an IDR plan.
Unsure who your federal student loan servicer is? Log in to My Federal Student Aid
If you’re preparing to pay student loan bills for the first time If it’s your first time paying student loans, you may need to log in to your FSA account to figure out who your servicer is and how much you owe. Your servicer will be able to tell you how much your monthly payment could be under various repayment plans.
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