With the COVID-19 grace period on student loans due to end on October 1, you may need to start preparing now.
An expert from the National Foundation for Credit Counseling says to start by making a checklist.
âThe next thing to do is set reminders and those reminders are for key points on the timeline between now and October 1. You want to set reminders to get in touch with your server, you want to set reminders for when your payments start, and you want to document all communications that take place between you and your student loan officer, âsaid Bruce McClary of the National Foundation for Credit Counseling.
It’s important to get this all in order now, as there might be a lot that has changed for you since last March that could impact your payments.
According to a Student Loan Hero survey, 55% of borrowers say they are unsure whether they can pay their payments in October.
This could be because you’re worried about paying for food or rent, or maybe you’ve taken out a loan for a new house or car that you now need to budget for.
But a benefit to preparing now could mean avoiding the consequences of loans that you may have paid late in the past for these reasons.
“If any of them are past due or in default, it’s the 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 end. of the suspension, âsaid Andrew Pentis. with Student Loan Hero.
This means that you will no longer have to deal with these consequences in the fall.
If your income has changed, you also want to make sure you pass that information on to your lender.
âYou may need to resubmit your most recent taxes, so now is the time to start, especially because if you need to resubmit your taxes. This process usually takes a few months, âMcClary said.
Without your tax information, you could end up with a big bill that you are not prepared for.
You should soon receive notice from your student loan provider regarding the resumption of payments.