MINNEAPOLIS — Student loan payments start up again Oct. 1 for the first time in three years, and right now millions of Americans are rearranging their budgets to prepare.
If you have student loans, you probably received a notice in the mail or in your inbox about payments starting up again. If you haven't logged in to check on your loan yet, experts say you should do that ASAP because a lot has changed since the pause went into effect in 2020.
Kim Miller says it's been a busy time for financial counselors, answering the tough questions for millions of student loan borrowers.
"People are just concerned. They want to make sure they're doing the right thing, that they're on track,” Miller said.
If you have student loans, first thing to do is to log onto StudentAid.gov. Check and make sure all your information is still accurate. Then you can use the loan simulator to crunch the numbers.
"It will automatically load in your loans, it will ask you a couple of questions based on your scenario, your household size, your tax filing status, and then it will give you all of your options," Miller explained.
Miller says some borrowers will decide to stay on the same plan and keep making the same payments, but for many borrowers, the new SAVE plan, which came out earlier this year, may be a better option.
"It is okay to pick a lower payment plan just to kind of get used to it and then you can always pretend to pay more on a regular basis into a savings account to see how that payment fits,” Miller says.
If the higher payment does fit, borrowers can increase their monthly payments gradually. Miller says the plans are incredibly flexible.
Borrowers should also be on the lookout for scams.
Miller says a lot of borrowers are confused and worried about making payments again, and scammers will try to use their emotions against them.
"They convince people that they can skip the line for forgiveness, or there's a new cancellation program or they can help them find a lower repayment," Miller said. "You should not have to pay anyone for student loan assistance."
Counselors say some borrowers may not have to make that first payment until November or December because loan servicers are busy dealing with all these changes. However, counselors say, regardless of when your payments are due, the loans are already accruing interest again, so the sooner you start paying the better.
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