Prepare for the Student Loan Pause to be Lifted on May 1, 2022

Late last year, it was announced that the pause on student loan repayments would be extended to May 1, 2022. This means federal student loans continue to be at 0% interest with no mandated payments. While that sounds great at the moment, you might be wondering what to expect when the extension ends and we have to may payments again. After all, the Cares Act has been in place for nearly two years and many students are not ready for their payments to go live. Here are some ways you can prepare to start making payments again.

Start small.

In order to ease your way into a student loan payment again, consider starting out with a smaller payment. Try doing 1/4 of the monthly payment for two months. Either put that toward your student loan to help lower the balance or put into a savings that you won’t touch. After those two months, reevaluate how this payment is fitting into your current budget and other monthly bills. If you’re feeling comfortable increase it to be making half of the monthly payment for the next two months. Again, deposit the funds either toward the loan or into a separate savings. On the last month, try a full payment, and reflect on how it’s affecting you financially. 

Unable to make a payment?

If you’re unable to make a full payment, a partial payment, or simply can’t make payment whatsoever, you must contact your student loan provider. This is key. They may be able to provide you with additional options that are better suited to your financial needs. Don’t wait! You should contact them before your first bill is due. Staying on top of it will help to protect your credit score and relieve any financial stress and worry you may be experiencing. Some of the options they may discuss with you could be: