To say the last few years in the student loan world have been chaotic is an understatement.
If you have student loan debt, its been a whirlwind.
Youve had some time away from making monthly payments, and that time is up as of October.
If its any comfort (and it probably isnt), youre not the only one who owes.
Outstanding student loan debt clocked in at$1.77 trillionin 2023, according to the Education Data Initiative.
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
Ask one of these companies to help… Ready to tackle that student loan debt?
Good, lets get started.
Heres what you better do before you make that first payment.
Oh, and interest rate is important, too.
Theres been a lot of change in thestudent loan servicing industryas well.
If you dont see any loans listed on this site, then theyre likelyprivate student loans.
Your options for repayment will differ based on whether your loan is backed by the federal government.
These plans calculate your monthly payment amount based on your income and family size.
They cap your monthly payment typically somewhere between 10% and 20% of your discretionary income.
However, the Biden administrationannounced a major correctionto these plans in June 2023.
This change alone will reduce the average annual student loan payment by more than $1,000.
Do as much as you’re free to toknock that balance downbefore payments resume.
Wondering where to find extra money before the deadline?
Consider taking up aside hustleto make some extra cash to throw toward the payment.
Think About Forgiveness
Student loan forgiveness plans have been around long before the last few years.
Theres actually quite a few ways to get yourstudent loans forgiven.
But its not easy or fast, or even likely.
Though thewaiver that added additional benefitshas expired, the program is still available.
Avoid Delinquency and Default
If you miss your payment by even one day, your federal loan becomes delinquent.
you could also qualify for deferment if youre enrolled in an approved graduate fellowship program.
However, during forbearance, interest will continue accruing on all of your loans.
Both options are only temporary fixes, and youll probably end up owing more money in the end.
But at least you wont wreck your credit score.
Why does that matter?
A poor credit score may not even qualify you for a loan.
Cut back on any unnecessary expenses so you might pay off that debt faster.
Additionally, you shouldnt sacrifice your future for todays debts.
Instead of paying every dollar toward student loans, start saving for your retirement now.
Bonus: Socking away your money in a401(k) or IRAreduces your taxable income.
Tiffany Wendeln Connors is deputy editor at The Penny Hoarder.
Senior writer Robert Bruce contributed to this article.
When you log into your bank account, how do your savings look?
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
