The student loan payment is restarting in two months, and some senators are worried about the unpreparedness of the borrowers. Fortunately, there are online tools available that can help them plan out their payments.
According to Business Insider, Sen. Elizabeth Warren is worried about the 43 million federal student-loan borrowers who might 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 out on vital information about the payment restart."
Student Loan Payment Restart Details
Lawmakers emphasized that borrowers would need detailed information regarding their loan payments. The information requested includes the first due date for the payments and whether or not that date will be the same for all borrowers. Lastly, affected parties might also be curious if the missing payments will reflect their personal credit scores.
Lawmakers gave the Education Department until March 9 to present the answers to these inquiries.
Student Loan Payment Suspended
It is worth pointing out that this is the third time President Joe Biden extended the pause on student-loan payments, which is set to expire on May 1. When the program is retained, officials estimate a $1.7 trillion student debt crisis ensuing.
Unfortunately for borrowers, Biden has yet to fulfill his campaign pledge about canceling student debt broadly. With that said, affected parties are recommended to prepare their payments ahead of the date.
3 Ways to Prepare for Student Loan Payments
Forbes listed three suggestions that can help borrowers prepare for the end of student loan relief. Borrowers can try applying any of these suggestions immediately.
- Refinance Student Loans: This method is one of the fastest way to sort through debt and pay it effectively. Note that this can also lower the interest rate, help save money and pay off student loan debt early.
- Use Autopay: This suggestion is heavily linked to the first tip, which helps borrowers pay their debts in smaller but consistent amounts. One bonus about this tip is after a user finishes the setup process, they can conveniently forget about their debt because autopay will pay it for them.
- Get Student Loan Forgiveness: Borrowers who are struggling to pay back debts can also request student loan forgiveness to terminate the payment. This should be especially helpful to borrowers who might have experienced total or permanent disability.
How to Use Student Loan Refinancing Calculator
Lastly, borrowers can try the online tool student loan refinancing calculator to help them manage their payments.
Borrowers can use this tool by going to this website and providing the necessary information like their student loan balance, average interest rate, and years left to pay off. Then users can refinance terms by adjusting a new interest rate and repayment term.
Note that the calculator automatically computes monthly savings and total savings from the payments.
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