1. Know Your Loan Servicer

Did you know that the federal government hires loan servicer companies to handle various administrative tasks related to your student loans? This includes important things like billing, repayment plans, and providing assistance throughout the repayment process. You may be familiar with some of these companies, such as Mohela, Nelnet, and Aidvantage. However, it's worth noting that contracts with some of these companies have ended, so your loan servicer may have changed since February 2020.

It's crucial to establish direct communication with your loan servicer so you can stay informed about your repayment obligations. They can also offer you valuable information and resources to help navigate the repayment journey more effectively.

If you're unsure about who your loan servicer is, you can easily find out by visiting the National Student Loan Data System (NSLDS) website. Just log in with your FSA ID (Federal Student Aid) and you'll have access to information about your loan servicer and other important loan details.

2. Address Your Repayment Plan Questions

Who should you contact if you have questions about payment plans? Here are some reliable sources that can provide accurate information and support: 

1. Loan Servicers: Your loan servicer is an expert who can guide you through the specifics of your loan and offer advice based on your unique circumstances. Discover available repayment options, find out if you meet the eligibility requirements, and choose the plan that best fits your financial situation.

2. Financial Aid Offices: Your school's financial aid office is a valuable resource for information and guidance. They can assist you in choosing the most suitable repayment plan for your needs.

3. Department of Education's Student Loan Helpline: The Department of Education operates a dedicated student loan helpline, which serves as a reliable resource for borrowers seeking information about repayment plans.

When contacting these resources, be prepared with specific questions about repayment plans, such as inquiries about income-driven repayment options, loan forgiveness programs, or the impact of different plans on your monthly payments. Having clear communication will ensure that you receive accurate and personalized guidance tailored to your needs.

3. Assess Your Financial Situation

Understanding where you stand financially will help you better prepare for the upcoming payments and ensure that you can manage them effectively. Here are some key steps to consider:

1. Review Your Income: Take a close look at how much you earn regularly, including wages, salaries, and other sources of income. This will help you understand how much money you can dedicate to your student loan payments.

2. Evaluate Your Expenses: Examine your monthly expenses in-depth. This includes your rent/mortgage, utilities, transportation costs, groceries, and any other regular expenses. Identify areas where you can cut back to free up more money for your loan payments.

3. Create a Budget: Make a budget that aligns with your financial goals and includes your student loan payments as a fixed expense. A budget acts as a roadmap for your finances, helping you stay on track with your payments while managing other financial obligations.

4. Utilize Tools and Resources: Take advantage of the Hiatus app to help you track your income, expenses, and savings goals. Leverage Hiatus' concierge team to cancel unwanted subscriptions and negotiate bills on your behalf.

By assessing your financial situation before the loan payments resume, you'll be able to make informed decisions about your finances and allocate the necessary funds to meet your student loan obligations.

4. Explore Repayment Options

When it comes to paying off your student loans, it's important to explore your repayment options. Understanding these options will help you choose the best repayment plan that aligns with your financial situation and long-term goals. Here are some common repayment options to consider:

1. Standard Repayment Plan: The standard repayment plan is the default option for most borrowers. It involves fixed monthly payments over a set period, typically 10 years. While it allows you to pay off your loans faster, monthly payments may be higher compared to other plans.

2. Income-Driven Repayment Plans: Income-driven repayment plans, such as Income-Based Repayment (IBR), Pay As You Earn (PAYE), and Revised Pay As You Earn (REPAYE), base your monthly payments on your income and family size. They can provide more affordable payments for borrowers with lower incomes and may offer loan forgiveness after a certain number of years.

3. Extended Repayment Plan: This extends your repayment period beyond the standard 10 years, reducing monthly payments but increasing the overall interest paid over the life of the loan.

Each repayment option has its own advantages and considerations, including factors like monthly payments, loan forgiveness eligibility, and interest rates. It's essential to research and compare these options to find the one that best suits your financial situation and goals.

For example, the standard plan allows for faster loan repayment but may result in higher monthly payments. Income-driven plans offer manageable payments based on your income and the potential for loan forgiveness. Extended plans offer lower monthly payments but may result in higher interest costs over time.

5. Take Advantage of Assistance Programs and Resources

There are plenty of assistance programs and resources available to help lighten the load and provide support throughout the repayment journey. 

By taking advantage of these programs, you can potentially save money, simplify your repayment process, or even get temporary relief when you need it. Here are some key assistance programs and resources to consider:

1. Public Service Loan Forgiveness (PSLF): PSLF is a program designed for borrowers working in public service or certain nonprofit organizations. If you qualify, and make 120 qualifying payments while working full-time in qualifying public service jobs, you could be eligible to have their remaining loan balance forgiven.

2. Loan Consolidation: Loan consolidation allows you to combine multiple federal student loans into a single loan. Not only does this simplify your repayment process by reducing the number of monthly payments, it may also extend your repayment period. However, keep in mind that there are pros and cons to consolidation, such as changes to interest rates and total repayment costs.

3. Deferment/Forbearance Options: If you encounter financial hardship or face other challenging circumstances, deferment or forbearance options can provide temporary relief from making loan payments. Deferment allows you to temporarily postpone payments, typically for specific reasons like unemployment or returning to school. Forbearance, on the other hand, allows you to temporarily reduce or pause payments due to financial difficulties.

To access and apply for these programs and resources:

• Visit the official website of the Department of Education: The Department of Education's website offers comprehensive information on various assistance programs, including eligibility criteria and application processes. Explore their resources to learn more about specific programs and find guidance on how to apply.

• Contact Your Loan Servicer: Your loan servicer is a valuable resource for accessing assistance programs. Reach out to them directly to inquire about available options, eligibility requirements, and the application process. They can guide you through the necessary steps and provide personalized assistance.

• Seek Guidance from Financial Aid Offices or Nonprofit Organizations: Financial aid offices at your educational institution and nonprofit organizations specializing in student loan assistance can provide valuable guidance. They can help you navigate the available programs, answer your questions, and assist with the application process.

By taking advantage of these assistance programs and resources, you can better manage your student loans and potentially save money in the long run. Be proactive in exploring the options that align with your needs and circumstances. Remember, staying informed and seeking assistance when needed will help you navigate the complexities of student loan repayment more effectively.