Student Loan Repayment Resumes in May. Here are 5 Ways to Prepare.

Less than three months.

That is the amount of time that borrowers with federal student loans have before repayment begins. At the onset of the coronavirus pandemic, the federal government suspended student loan payments. It has since been extended numerous times, most recently just before Christmas.

Payments will begin on May 1, according to the Department of Education (DOE). What should borrowers do now to get ready?

Here are five suggestions:

1. Familiarize yourself with your loan account. Get answers to the following questions:

• How much is/are your balance(s)?

• What kind of loans do you have?

• What company is your servicer?

• What are your interest rates?

• What repayment program are you currently enrolled in?

You will be better able todetermine how to handle your loans if you know the answer to these questions. It is also crucial to know which bank is managing your loans because some servicers have changed during the pandemic. 2. Review and confirm that your contact information is up to date with your servicer.

Ensure that your loan servicer has your correct contact information. This includes your email and physical mailing addresses as well as your primary phone number. When the payment pause expires, servicers should be sending each borrower extremely essential information that is vital for you to receive.

3. Determine the amount of your monthly payment.

A monthly payment should be listed on your student loan account. You can also call if you are unable to locate this information online. Once you have calculated your monthly payment, ask yourself, "Is it affordable?" If not, a variety of payment alternatives are available.

(See below for more information!)

4. If you do not think you will be able to afford your monthly payments, research other choices.

There are a few possibilities for minimizing your monthly payment under the federal student loan program. Some are based on your account balance, while others are based on your earnings.

The Loan Simulator, available on the Department of Education's website, will assist you in determining which payment plan is best for you. It will also reveal whether loan forgiveness options, such as Public Service Loan Forgiveness, may benefit you over time if you pursue them.

5. Don't expect automatic loan forgiveness.

President Biden has given indications that he will not use his executive authority to cancel student debt, even though his administration has already canceled some debt through pre-existing forgiveness programs. Do not expect loan forgiveness if you are not participating in an existing loan program.

If your upcoming payments leave you feeling insecure or you just need help researching which program you are currently enrolled in, contact Edapt Student Services today.

WE ARE HERE TO HELP!