It’s time to start preparing for the resumption of student loan payments.

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Since the COVID-19 grace period for student loans expires on October 1, there are some things you might need to start preparing for right now.

An expert from the National Credit Counseling Fund recommends starting with a checklist.

“The next thing to do is set reminders, and these reminders are linked to key points in the timeline between now and October 1st. You want to set reminders to communicate with your service staff, you want to set reminders of when your payments begin, and you want to document all the communications that happen between your student loan servicer and you, ”said Bruce McClary of the National Endowment credit counseling.

It’s important to tidy this up now because a lot has changed for you since March last year that could affect your payments.

According to the Student Loan Hero survey, 55% of borrowers say they are not sure they can afford payments in October.

This could be because you are worried about paying for food or rent, or maybe you took out a loan for a new house or car that now needs to be spent on budget.

But the advantage of getting ready now can mean avoiding the consequences for loans that you may have paid off late in the past for these reasons.

“If any of them are past due or defaulting, these are loans, you really want to attack first, and the best thing you can do is rehabilitate them or come up with a plan to rehabilitate them before the suspension ends,” said Andrew Pentis … with student loan hero.

This means that you will not have to face these consequences again in the fall.

If your income changes, you also want to make sure you get this information to your lender.

“You may have to resubmit your most recent taxes, so now is the time to start doing that, especially since you will have to resubmit your taxes. This process usually takes a couple of months, ”McClary said.

Without your tax information, you may end up with a large bill that you are not ready for.

You will receive a notice from your student loan provider to resume payments shortly.

Additional resources on how to manage student loan payments can be found at NFCC.org or StudentLoanHero.com



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