Tuesday Tips for July 2023

Preparing for October's Repay Restart

For many of us, it’s been more than three years since things have been “normal.” So much that was once routine came to a halt—including repaying federally held student loans. This is changing in October 2023, when the pause on these loans will end, and repayment will resume. Not to worry. FAME has you covered with resources to help you navigate the process.

Steps to Take

• Visit StudentAid.gov to confirm your federal student loan servicer information (this is who you will be sending your payment to), as it may have changed.
• Create or update your online account with your servicer and provide your current contact information.
• While logged into your account, see what your monthly payment will be. Does it fit into your budget? If not, consider applying for an income-based repayment plan. Use the Loan Simulator at StudentAid.gov to see your monthly payment options. Select the one that works best for you based on your repayment strategy and goals. 
• If your monthly payment works for you, consider reauthorizing or setting up auto debit so your payment is always on time.

PRO TIP: Need help with your finances or looking for a budgeting tool to help you plan for loan repayment restart? Check out FAME’s free online financial wellness tool: FAME.Enrich.org.

If you can’t afford your student loan payment or can’t make your payment on time, don’t ignore it! Contact your loan servicer to explore alternative repayment options and loan forgiveness programs, such as Income-Driven Repayment and Public Service Loan Forgiveness. Document any communications with your loan servicer. Be patient and diligent. Millions of borrowers will be entering repayment at the same time.

PRO TIP: Watch out for student loan scams. Don’t pay anyone for help managing your student loans. Free help exists! Check out Student Loan Debt Relief Do’s and Don’ts to learn more about how to protect yourself from scams. Be sure to get the name of anyone you speak with and keep all documentation.

Questions?

Not sure where to begin? Visit FAME’s Repaying Student Loans webpage for helpful tips to help you manage student loan repayment.

FAME also partners with Solutions at ECMC to provide free counseling and support to Maine borrowers as they navigate federal student loan repayment. Contact Solutions at ECMC by phone at 1-877-331-3262 or visit their website at ECMCSolutions.org to connect with a student loan counselor through email or web chat. In an effort to help you get prepared, a student loan expert from Solutions at ECMC may also reach out to you directly via phone or email before you enter repayment.

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