Student Loan Payments

Key Takeaways

• Update your contact information with your loan servicer and studentaid.gov immediately, and re-enroll in autopay if you were previously signed up before the pandemic—you'll receive a 0.25% interest rate reduction and avoid missed payments
• Create a detailed monthly budget tracking all spending as 'mandatory' or 'discretionary'—if your loan payment is less than discretionary spending, you can cut back; otherwise explore increasing income or switching to longer-term repayment plans
• If you're financially struggling, explore income-driven repayment plans where payments are based on discretionary income percentage rather than loan amount—payments could be $0 if income is below 150% of poverty line (increasing to 225%)
• Check if you qualify for loan forgiveness through 20-25 year income-driven repayment plan forgiveness, Public Service Loan Forgiveness, teacher loan forgiveness, or employer loan repayment assistance programs (LRAPs)
• New college students should limit borrowing to actual need and aim for total graduation debt below annual starting salary—this allows repayment in 10 years or less and helps avoid post-graduation financial strain