Recommended Steps
The federal student loan payment pause that began as an interest-free payment in March 2020 is soon expiring. If you are among the millions of Americans anticipating a shift in your monthly obligations this October, we know you have many questions on your mind. We want to help you get prepared!
In addition to the new federal repayment arrangements that may make your student loan debt easier to manage, Community Choice is here for you.
We believe everything is figureoutable, with a plan. Here are our tips to get ready, feel set, and prepared to go when student loan payments resume this fall:
Get Ready
- Update your contact information with your loan servicer(s) and on StudentAid.gov, and make sure you have an online account set up on each website.
- Explore affordable repayment plans for payments as low as $0 a month and a path to forgiveness. Check out details of the new, most affordable repayment plan ever created, called the Saving on a Valuable Education (SAVE) Plan. Single borrowers earning less than $32,800 or a family of four earning less than $67,500 may not owe loan payments under this plan.
- Enroll (or reenroll) in autopay on your servicer’s website, which will ensure your payment is automatically processed every month, so you don’t miss a payment. Autopay is optional, but often provides borrowers with the option of saving money.
- Check if you qualify for a type of targeted loan forgiveness. This is possible for borrowers who meet different types of criteria, such as public service employment, disability, or college wrongdoing.
- Be on the lookout for scams. A borrower might be contacted by a third party claiming to provide help for you get loan discharge, forgiveness, cancellation, or debt relief for a fee. Keep in mind you never have to pay for help with your federal student aid. Work only with the U.S. Department of Education and our loan servicers, and never reveal your personal information or account password to anyone.
Get Set
- Review your spending: Take a look at your leisure budget and adjust accordingly. Smaller costs like going to the movie theater or taking a day trip with a picnic can help you get away from your busy life while managing your spend so you have the money needed for monthly bills and necessities. You can utilize Bubble Budgets in your e-Banking account to color code certain costs to help with your budgeting and tracking efforts.
- Create a plan for other debts: It’s a great time to consolidate or eliminate other sources of debt. For example, if you have several credit cards with outstanding balances, consider a personal loan to pay them off with one fixed payment. Refi higher interest car loans, etc.
- Don’t give up on saving: Your 2024 vacation doesn’t have to be a broken dream. Use Targets in e-Banking to pay yourself first.
- See how the payment fits your budget: Try your loan payment on for size for the next couple months. Put those dollars in a Target, or Choice Goal, to experience your budget without those funds. Perhaps it’s comfortable, and now you have a rainy-day fund. If it feels tight, you’ve at least got a head start for the first couple months of repayment.
- Stay informed: Follow updates provided by your loan servicer and use our financial tools to monitor how well your payments are fitting into your budget. The bottom line is that having a plan to pay off or at least mitigate your student loan may be the best way to adjust. Our certified financial counselors are available to discuss your options and how these fit into your household financial planning so you can achieve the lift you desire.
Call us at 877.243.2528 or make an appointment to learn more.