Student loan borrowers, the time is (almost) here. After an extended pause due to COVID-19, federal student loan interest will officially start accruing on September 1, 2023, and federal student loan payments are set to resume in October 2023.
If you have federal student loans, it's important to stay on track once interest begins accruing again and your payments restart.
In other words, don't wait until your first bill is due to prepare! We have tips to help you flex your budget and make a plan that works for your situation.
Tip #1: Review Your Student Loan InformationFirst, create or log into your account at StudentAid.gov profile and make sure all your contact information is up-to-date. Next, visit your loan servicer's website. There's a chance the company servicing your student loan may have changed since the last time you made a payment. From there, you can review your student loan principal balance, accumulated interest and payment plan. You may also need to re-enroll in automatic payments through your loan servicer. Tip #2: Revisit Your BudgetIf you took a break from paying your student loans during the relief period, use this time to see how your monthly student loan payment fits into your current budget.You may find you need to reevaluate your routine and cut a few non-essential expenses — or consider a side hustle to earn a little extra income.Another way to prepare is by setting aside funds for your student loan in a savings account, where it will earn dividends (or interest) until the payment is due. This will help you get back into the habit of making monthly payments. Tip #3: Start Repaying EarlyIf your budget is ready, you could start making student loan repayments now. Making payments while the interest rate is still 0% will allow you to save money in the long run and potentially pay off your loan sooner. Tip #4: Consider Refinancing Student LoansIf you're overwhelmed and struggling to make student loan payments, you have options. Start by contacting your loan servicer before you miss a payment. You may be eligible to switch to a different payment plan that makes your payments more manageable. Another option to consider is refinancing your student loans. Wright-Patt Credit Union (WPCU) offers student loan refinancing provided by Student Choice. Our student loan refinancing allows eligible borrowers to consolidate private and federal student loans (including Parent PLUS loans) into one manageable loan, one convenient payment and one competitive rate with flexible repayment terms to fit your needs. Learn more about refinancing and how to apply online.Tip #5: Use Student Loan ResourcesThrough Student Choice, WPCU members have access to a variety of free student loan resources, including helpful articles, financial wellness tools and educational webinars and videos. We also have a dedicated College Counselor who can provide personal, one-on-one consultation for all your financial aid, repayment and refinancing questions.
First, create or log into your account at StudentAid.gov profile and make sure all your contact information is up-to-date.
Next, visit your loan servicer's website. There's a chance the company servicing your student loan may have changed since the last time you made a payment.
From there, you can review your student loan principal balance, accumulated interest and payment plan. You may also need to re-enroll in automatic payments through your loan servicer.
If you took a break from paying your student loans during the relief period, use this time to see how your monthly student loan payment fits into your current budget.
You may find you need to reevaluate your routine and cut a few non-essential expenses — or consider a side hustle to earn a little extra income.
Another way to prepare is by setting aside funds for your student loan in a savings account, where it will earn dividends (or interest) until the payment is due. This will help you get back into the habit of making monthly payments.
If your budget is ready, you could start making student loan repayments now. Making payments while the interest rate is still 0% will allow you to save money in the long run and potentially pay off your loan sooner.
If you're overwhelmed and struggling to make student loan payments, you have options. Start by contacting your loan servicer before you miss a payment. You may be eligible to switch to a different payment plan that makes your payments more manageable.
Another option to consider is refinancing your student loans. Wright-Patt Credit Union (WPCU) offers student loan refinancing provided by Student Choice.
Our student loan refinancing allows eligible borrowers to consolidate private and federal student loans (including Parent PLUS loans) into one manageable loan, one convenient payment and one competitive rate with flexible repayment terms to fit your needs.
Learn more about refinancing and how to apply online.
Through Student Choice, WPCU members have access to a variety of free student loan resources, including helpful articles, financial wellness tools and educational webinars and videos.
We also have a dedicated College Counselor who can provide personal, one-on-one consultation for all your financial aid, repayment and refinancing questions.
Now is the time to get your questions answered and make a plan for success! Whether you're resuming student loan repayment as a college graduate or the parent of a student, WPCU is here to help you. Schedule an appointment or ask a question today.