In March the Cares Act suspended payments and interest on direct federal loans. The suspension ends in December. Don’t wait to plan how you will manage starting repayment; start planning NOW.
Writing for The Wall Street Journal JULIA CARPENTER explains the options and why borrowers need to plan now for end of payment holiday.
Set up a strict Spending Plan… NOW!
If, after a serious evaluation of your spending, you come up short in planning to resume repayment, investigate other options with lower monthly payments:
income-based repayment plans, loan refinancing, consolidation, payment deferral and extended forbearance.
But, use caution: ” Such options often come with other requirements, like a minimum credit score, or bring their own disadvantages, like a longer period of interest accrual.”
“For consolidation and refinancing, be aware that doing so could potentially pull you out of the forbearance period.”
Call your loan servicer today to ask about repayment options. Don’t wait until December when servicers may be overwhelmed with calls
Source: Financial Planning for Women