7 Ways to Prepare for Your Student Loan Repayments in May

February 2, 2022
By:  Freedom to Prosper Team

Here at Freedom to Prosper, we’re working every day towards full and complete student debt cancellation because it will give 47 million Americans and their families a greater opportunity to prosper. It’s also the moral and right thing to do.

In the meantime, Betsy Mayotte, founder of the Institute of Student Loan Advisors – a nonprofit organization that offers free counseling to borrowers, recently shared advice with NPR on ways to prepare for student loan repayments if and when they resume in May:

1. Get acquainted (or reacquainted) with your federal loans
2. Update your contact information
3. Understand what your monthly payment will be
4. If you don’t think you can afford your monthly bill, seek out additional payment options
5. If you can afford to, start paying before the pause ends
6. Be very wary of scams
7. Don’t count on loan forgiveness by Presidential Executive Action

1. Get acquainted (or reacquainted) with your loans

Get answers to the following questions: How much is/are your balance(s)? What kind of loans do you have? What company is your servicer? What are your interest rates?

For federal loans, go to www.studentaid.gov to find that information.

2. Update your contact information

When the repayment moratorium ends, lenders will send you important information, so make sure your mailing address, email address, and phone number are up-to-date.

3. Understand what your monthly payment will be

If you can’t access your payment information online, be sure to call your lender so you can plan ahead.

4. If you don’t think you can afford your monthly bill, seek out additional payment options

Learn more about your options to lower your monthly payments on StudentAid.gov.

5. If you can afford to, start paying before the pause ends

All payments during this moratorium period go 100% to the principal, so if you can afford it, it might be a good idea to start paying before the pause ends.

6. Be very wary of scams

As repayment approaches, there will likely be more predatory scammers contacting borrowers via email, social media, and even text messages and phone calls. Never give anyone your PIN or password.

Red flag: If they promise student debt cancellation without knowing your personal situation.

7. Don’t count on loan forgiveness by Presidential Executive Action

Over the past year, there has been a lot of buzz around the question of whether or not the President cancel student loans by Executive Action. It is currently under judicial review if this is possible, but don’t hold your breath. The President, however, pledged to sign a student debt cancellation bill if it can pass Congress.

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