- January 22, 2021
- Posted by: Carter Davis
- Category: Knowledge Base
As the American administration goes through its presidential transition, many college students and graduates will keep their eyes on the news, waiting for information on the end of the administrative forbearance. Though the president-elect continues to keep the student loan crisis near the top of his itinerary, it’s impossible to tell what will realistically happen with the over 1.6 trillion dollars of student debt.
The country expects an administrative forbearance extension at the very least, but stay on your toes with these essential ways to prepare for student loan repayments in 2021. After preparing for loan payments, you can focus on recovering from the devastating global pandemic in other aspects of your life.
Note Any Changes in Income
2020 brought changes to many people’s incomes. If the pandemic has affected your income at all, make sure you communicate it with your student loan provider before student loan repayment plans come back into effect. Doing so ensures your monthly payments are affordable.
Watch Your Budget
Because you haven’t needed to make regular payments to your student loan providers, you may have had some wiggle room in your budget recently. Start thinking about your budget ahead of time in case your monthly payment amount remains the same, goes up, or decreases. You may have other things for which you need to focus on paying, such as food and rent.
Keep an Eye on the News
The news on federal and private student loans is always subject to change. Keep tabs on a trustworthy source of news to learn if the new administration provides student loan assistance or forgiveness to federal lenders. It’s likely that the government will push the end of the administrative forbearance further into the year, but you shouldn’t count on it until it formalizes the announcement.
Pay What You Can
During this forbearance, no federal student loan holder has to make monthly payments, and their loans also don’t capitalize interest. If you’re financially secure, consider making small payments to slowly cut down the interest you’ve accumulated. Once payments begin again, you’ll owe less money to the debt overall and have to worry less about hefty interest.
Get Financial Assistance
If the pandemic was especially hard on you and you feel stuck or scared when considering the ways to prepare for student loan repayments in 2021, it might be time to find help. Whether you need private or federal student loan help, Hope Credit can provide you with student loan professionals who can get you through the fear and doubt. With an unmatched success rate and experts who care about protecting your rights, we’ll help you find the perfect solution to your student debt.