Financial Wellness Minute: What You Need to Know About Federal Student Loan Payments Resuming

Get smarter about your money with this Financial Wellness Minute. I am Patrick Voigt, manager at Mid Minnesota Federal Credit Union's Detroit Lakes Office. Most federal student loan payments and interest have been suspended since March 2020. Interest charges will resume on September 1 and payments will begin again starting in October. If you have outstanding Federal student loans, now is the time to prepare to restart your payments.

1. Log in to your student loan account to review your loan details. Make sure your contact information is correct and review your bank auto debit enrollment information. You will be notified before payments are due. The company you are making your student loan payment to may have changed (it did for about 2 million borrowers when payments were paused). Be sure you know who currently holds your loan(s).
2. Review communication about your loans carefully to avoid scams. Do not provide any personal information by phone or email unless you are certain it is from the company that holds your loan. If unsure, look up the company information on their website, and call them directly.
3. If you stopped making loan payments during the pause, you will need to put them back into your budget. Consider applying for an income driven repayment plan (IDR).
4. Don't wait. About 44 million borrowers will be resuming payments this fall, so there could be long waits for personal assistance.

For the latest updates on federal student loans go to Student Aid. Keep in mind that these guidelines apply to your federal student loans only; if you have private student loans, your payments have not been affected and you can access your loan information via your servicer's website. Student Aid also provides a loan simulator where you can learn more about repaying your federal student loans, or what to do if you cannot afford your payment. You can also contact your servicer to discuss what options may be available, including income-based repayment plans. For additional details on the payment restart click here. Looking for more information on student loan repayments resuming, checkout Lutheran Social Services Blog.   Want to know more about student loans or have a weekly financial wellness tip sent to you? Sign up below or, contact your local Mid Minnesota Federal Credit Union Office. Sign Up for a Weekly Financial Wellness Tip Mid Minnesota Federal Credit Union is federally insured by the NCUA and we are an equal housing lender.