Students may also want to consider providing consent to allow the secure disclosure of their tax information to be automatically provided to the Department of Education and their federal student loan servicer each year to recertify their enrollment in an IDR plan, Conway adds, because it can impact adjustments to their monthly payment amount.
This can also save you time and energy since you won’t have to manually provide details on your income or family size each year. You will always be notified when your payment amount changes.
Revisit your loan payment amount, interest rate and balance
While your first monthly bill will contain the amount due, your loan servicer may notify you sooner. You can also check your account on your loan servicer’s website.
In most cases, your interest rate will remain the same, but if, for example, you consolidated your loans during the payment pause, it may change. Your loan servicer’s website will contain these details on your dashboard, along with your loan balance.
Confirm your autopay enrollment details
If you were previously enrolled in autopay before the payment pause and wish to resume those automatic payments, you’ll need to confirm your autopay enrollment with your student loan servicer. Make sure your linked bank account has sufficient funds to cover the loan payment.
Remember, if you are enrolled in autopay, your loan servicer will automatically withdraw your monthly payments from your bank account, ensuring your online payments are made on time. You will also pay less in interest each month. You can enroll in autopay on your loan servicer’s website.
A tip for those new to federal loan repayments
If you graduated during the COVID-19 pandemic, you may have yet to make your first federal student loan repayment. Nevertheless, your first payment will be due in October 2023 unless you graduated recently and are in a grace period. (Direct Subsidized and Direct Unsubsidized Loans have a six-month grace period following graduation, but not all federal loans have one.)
Set aside some time now to double-check your contact information on StudentAid.gov and with your federal student loan servicer, and review your loan details and payment method to ensure on-time payments. Doing so now is like studying for a test: It helps make the big day go a little smoother.
Responsible borrowing at University of Phoenix
Navigating the world of loans, scholarships and grants can feel overwhelming, but if you use the principles of responsible borrowing, your pathway might become a little clearer.
Simply put, responsible borrowing is taking out loans for only what you need. You may be offered more, but anything you borrow today has to be paid back — with interest — tomorrow.
As always, it’s best to explore grants and scholarships before you apply for a loan.
Learn more about federal student aid on the University of Phoenix website and PhoenixConnect blog!