Student loan repayment restarts in two months, and some senators are concerned about borrowers’ lack of preparedness. Fortunately, there are online tools that can help them plan their payments.
According to Business Insider, Senator Elizabeth Warren is worried about the 43 million federal borrowers who may not be ready for the bill.
Warren and a few concerned members ended up writing a letter to Education Secretary Miguel Cardona stating that “millions of borrowers appear to be at risk of missing vital information about restarting payments.”
Student Loan Payment Restart Details
Lawmakers pointed out that borrowers would need detailed information about their loan repayments. The information requested includes the earliest payment due date and whether or not that date will be the same for all borrowers. Finally, affected parties might also be curious whether the missed payments will reflect their personal credit scores.
Lawmakers have given the Department of Education until March 9 to present responses to those demands.
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Student loan payment suspended
It should be noted that this is the third time that President Joe Biden has extended the pause on student loan payments, which is due to expire on May 1. When the program continues, officials estimate a $1.7 trillion student debt crisis will ensue.
Unfortunately for borrowers, Biden has yet to deliver on his campaign pledge for blanket student debt cancellation. That said, it is recommended that the parties concerned prepare their payments before the date.
3 ways to prepare for student loan repayments
Forbes has listed three suggestions that can help borrowers prepare for the end of student loan relief. Borrowers can try to apply any of these suggestions immediately.
- Refinance student loans: TThis method is one of the fastest ways to sort out debts and pay them off efficiently. Note that it can also lower the interest rate, help you save money and pay off your student loan sooner.
- Use automatic payment: This suggestion is strongly related to the first tip, which helps borrowers pay their debts in smaller but constant amounts. A bonus about this trick is that after a user completes the setup process, they can easily forget about their debt as the autopay will pay it for them.
- Get student loan forgiveness: Borrowers who are struggling to repay their debts can also apply for student loan forgiveness to end the payment. This should be especially helpful for borrowers who may have experienced total or permanent disability.
How to Use the Student Loan Refinance Calculator
Finally, borrowers can try the online student loan refinance calculator tool to help them manage their payments.
Borrowers can use this tool by going to this website and providing the necessary information such as their student loan balance, average interest rate, and remaining years to repay. Then, users can refinance terms by adjusting a new interest rate and repayment term.
Note that the calculator automatically calculates monthly savings and total savings from payments.
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