We all knew this was coming, and now it is here. Student loan payments are going to commence in a couple of weeks. That can be an issue for many people because they’ve grown accustomed to not paying those obligations and have altered their spending habits accordingly. A ray of hope for the college graduate is that there is still time to make some adjustments to personal budgets to once again meet the requirement of repayment. Some things can be done immediately.
- Review your loan details
Gather all the information related to your student loans. Familiarize yourself with the type of loan you have, interest rates, repayment terms, and the servicer’s contact information. This permits the borrower to understand obligations better.
- Update any contact information that has changed
If you have moved since the moratoriums were created, check with the loan servicer to be sure that all contact information is up-to-date. That includes your mailing address, email address, and telephone number. It allows you to receive critical communications and payment reminders quickly.
- Review your repayment options
Federal programs offer various options such as standard repayment, income-driven repayment plans, or extended repayment plans. Assess which plan suits your financial situation and goals the best.
- Consider refinancing or consolidation
If you have multiple loans with varying interest rates, you might want to consider consolidating or refinancing your loans. Consolidation combines multiple loans into a straightforward payment process. Refinancing involves obtaining a new loan with a lower pay interest rate to replace your existing loans.
- Set up automatic payments.
Consider setting up automatic payments with your loan servicer. It ensures that your payments are made on time and sometimes enables you to qualify for an interest rate reduction.
- Investigate the rewards program of your credit card
Consider paying your student loans with a credit card. This is a safe way of transferring substantial amounts of money for your repayment to get lost in the mail. If you’re going to use a credit card, take a look at the rewards program. The student loan amount you pay might allow you to qualify for service rewards such as a discount card for gasoline or some other item or service you require.
- Seek professional assistance
College debt can threaten anyone’s financial wellness; you don’t want that to happen. It sometimes helps to have a professional, someone familiar with college loans, to assist you in resuming payments. Countrywide Pre-Paid Legal Services has a financial wellness benefit employers can consider to help their employees.
Certified Counselors Are Available
Countrywide has a nationwide network of certified counselors who have experience with financial wellness issues. These financial wizards familiar with college loan programs can help people as they start paying on their loans once again.
Financial situations change over time, and a person’s budget may be different than before the moratoriums. A Countrywide counselor will do a budget analysis to assist the person in developing a strategy for meeting all personal expenses, including college debt repayments. It might mean moving money from one column to another, but a Countrywide counselor is there to assist. Counselors are also familiar with the various program options for repayment. A financial wellness plan member is encouraged to ask as many questions as possible.
We also ask prospective clients to develop a financial wellness benefit. We explain our options, including college debt assistance, and let the decision-makers select which benefits will be part of their unique financial wellness plan. In addition, we provide administration and member services. The result is a highly practical benefit that employees will appreciate.
There is no need for anyone to panic. We all knew repayments would start again one day, and now that day is coming up. A person can adjust to the situation and arrange for repayments with the assistance of a Countrywide counselor. Our other options can help in other areas, such as medical bills and planning to buy a house. Please feel free to contact us at your convenience if you are interested in what we offer.