Interest is starting to accrue today on federal student loans, but payments don’t begin for about another month from now. Since March 2020, it was as if all interest on federal student loans was brought to 0%. But that comes to an end today.
None of this is exciting news if you are a borrower, but it’s important to take the time to get fully educated so you don’t have any surprises next month.
The most important thing if you have federal student loans is to take the time to log on to your servicer’s website. You should understand when your first payment is due and how you pay it.
If you don’t remember who your loan servicer is, you can go to the Federal Student Aid website and find out who it is. For millions of borrowers it has changed since March 2020 since some big servicers ended their contracts with the Department of Education.
It’s important to understand if the new income driven repayment plan, called SAVE, is right for you. The application for this new plan is now available and will take about four weeks to process. There is no deadline to apply, but the sooner you can decide the better so you can get more clarity on your path forward.
As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.
-Vivi & Shane
