If you are anything like me, the date January 31, 2021 creates a bit of anxiety when you think about it. For those that don’t know what this date means, it is the date that payments for federal student loans begin after all the COVID deferment. I graduated with my undergraduate degree in April 2021; therefore, this date has been weighing particularly hard on me. With the reality of payments starting soon, I have been doing some research that has both been helpful and has eased some of my stress. But, I know I am not the only one who will soon need to make these payments, so I thought I would share just a bit of what I have learned throughout my research.

If you don’t know who, what, or how much you will be paying in federal loans, take a moment to figure this out. First, take a look at the website studentaid.gov to find out who your loan servicer is, how much your federal loans consist of, and how to look at the breakdown of those loans. For this website, you will need your FAFSA ID and password to log in. This website is directly connected with your FAFSA. Please note that this website only shows federal student loans. If you believe you have private student loans, but you are unsure of the details, take a look at your credit report at annualcreditreport.com, where you can pull 1 free report from each of the three bureaus per year.

Next, look at the different loan forgiveness programs to see if the career you are going into might qualify. You will want to do this early on as many of these programs have very specific rules that must be followed in order for all or a portion of the loans to be forgiven. This information can also be found on studentaid.gov.

After you have figured out this information, read through the different repayment plans on studentaid.gov as there are several different plans to choose from. If you do not request any differently, you will be enrolled in the standard repayment plan upon completion of your grace period. The standard repayment plan is set up for you to pay off the entirety of your federal loans in a 10-year term in 120 equal payments. While this is the most economical plan, it does not work for everyone. Which plan you choose is completely up to you as you determine what is best for your unique situation. Different factors to consider could include the income that you currently are making, the time in which you are planning to repay the loan, the loan amount and your monthly payments, your other financial obligations, etc. If you choose one specific repayment plan and something happens in life that changes your ability to stick with that plan you can call your specific loan servicer and change to a plan the better fits your situation.

If you are reading this before you are required to make payments and you don’t like what you see using the loan repayment simulator, look into ways you might be able to decrease your student loans prior to graduation. And if you are starting your payments after January 31, know that while doing this research can be overwhelming and stressful, knowing is better than the obligation to pay having a domino effect on other parts of your life because you chose to ignore your student loans until the payments started.

Be informed and take control of what you want to do with your student loans! If you are feeling the stress and would like someone to help walk you through this process and research, schedule a meeting with a NEXUS Coach today: https://ronblueinstitute.com/schedule-an-appointment/.