What to Do When the Student Loan Forbearance Period Ends

What to Do When the Student Loan Forbearance Period Ends

(RepublicanDaily.org) – Since the COVID-19 pandemic began, one of the most pressing concerns on many people’s minds has been their student debt. Luckily, the initial forbearance period was extended to January 31, 2021, by Education Secretary Betsy DeVos in December, giving borrowers a little extra breathing space.

However, that deadline is still just weeks away. If you’re wondering how you’re going to get the money together, now’s the time to put a plan in place.

First, find out how your loan provider intends to deal with the end of the forbearance period. Some may debit you automatically on the first payment date after it ends; others will contact you first.

If you made any payments after the initiation of the forbearance period on March 13, you are entitled to a refund of that amount. However, there’s no point taking advantage of this unless you need the money, as you’ll have to pay it eventually anyway.

If you know you won’t be in a position to resume payments at the end of January, don’t panic. Contact your provider to see if you can arrange a tailored repayment plan. That might involve general forbearance or consolidation. Remember, it’s always in a lender’s best interest to work with you if it allows them to get their money back in the end.

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