How to Prepare for Student Loan Repayments
- Better Borrowing
- Frontwave Credit Union
Student loan borrowers are preparing to resume their payments after a long hiatus brought on by the COVID crisis. While it may seem daunting to pick up where you left off, evaluating your full financial picture and creating a repayment plan will help you take control of your debt and achieve your financial goals.
Here are some tips to help you get started:
Verify Your Loan Servicers
Before you begin repaying your loans, it's important to confirm who your loan servicer is. This is the entity responsible for managing your loan account and collecting payments. It’s possible your loan servicer may have changed during the pandemic so it’s a good idea to confirm where your loans are held today. You can check the status of your loans by logging in to the National Student Loan Data System (NSLDS) website using your Federal Student Aid ID or by contacting your school's financial aid office.
Evaluate Repayment Plans
Various repayment plans are available to help manage your loan payments. These include the standard repayment plan, income-driven repayment plans, and graduated repayment plans. Evaluate each plan to find the one that aligns best with your income, budget, and financial goals. Keep in mind that making larger payments towards your loans may save you money in the long run by reducing the amount of interest accrued.
Set Aside Savings
In addition to repaying your loans, setting aside savings can help you achieve your financial goals and reduce financial stress. Creating an emergency fund, prioritizing your retirement savings, and saving for other important expenses are all great ways to stay financially fit while repaying your loans.
Consider Loan Consolidation
Consolidating your loans into a Direct Consolidation Loan can streamline your repayment by allowing you to make a single monthly payment. Consolidation can also help you access different payment plans and forgiveness options. However, it's important to weigh the pros and cons of consolidation to ensure it's the right choice for your financial situation.
We Got You
At Frontwave Credit Union, we're invested in our members' success. We know that student loan repayment can be intimidating, but evaluating your full financial picture and creating a repayment plan can help you take charge of your debt.