Breaking Up with Student Loans

One of the common things that really starts to show up in February is debts. For most of us, debt is a part of life. However, we can change the amount we owe. So why not for this month, instead of thinking about the things I love, think about the opposite. I plan to think about breaking up with my debts, specifically lower interest debts like student loans or credit union personal loans.

First, what debts are lower interest debts or good debts? They are debts that help increase income or net worth. Common examples are student loan, mortgages, some car loans, and even personal loans, if the interest rate is low enough. Today, my focus is student loans repayments.

The Student Loan COVID forbearance is extended until May 1, 2022. Now is a good time to review your loans and have a new or existing payment plan ready for May. A great place to start is www.studentaid.gov. They cover all the repayment options. Below is an overview of the repayment options so you can come up with a student loan repayment plan.

Income Driven Repayment Plans are based off family size and income. The goal is to set up an affordable monthly payment. There are several different options within the Income Driven Repayment Plan. Click here to explore your options. The repayment plan extends up to 25 years. If you maintain the loans in good standing, the balance will be forgiven at the end of the plan’s terms.

First, do you work full time in the public sector, such as a non-profit or for a federal, state, local or tribal organization? Then, you may qualify have your student loans forgiven. There have been recent changes to this program’s guidelines and who is eligible. Click here to check out the link for additional information and procedures.

Over the past few months, the government has discharged student loans for many as well. If your student loans met the requirements, the loan balances should be updates and discharged automatically. To see if your loan met the requirements, check out the Federal Student Aid site.

Able to start making student loan payments once you finish with your degree? Then a standard 10-year repayment plan may be a good fit. The payments are higher allowing less interest to paid over the course of loan. Learn more about repayment plans.

Be aware of other student loan websites offering similar information. Some may be 3^rd parties asking for a fee for their service and some are completely fraudulent with their offers. Scam student loan offers pop up via phone call, text and the mail. A good rule to follow is your student loan provider will always identify themselves in their contact method and will not ask for banking information or personal identifiers. With all the changes to student loan program and payments, remember to be extra cautious. If it seems too good to be true, it most often is.

Apprisen is here to help as you tackle your student loans. We offer student loan counseling sessions. Set-up a free student loan counseling session to assess all your repayment options.