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Student Loan payments: The Storm After The Pause

Student Loan Payments

Are you ready to make student loan payments again?

Do you know what to do if you can’t afford it?

A Chicago Student Loan Lawyer, can answer your questions, analyze your case and help you understand which programs best fit your situation and budget.

Help for Student Loan Borrowers

  • The 2-year Student Loan Pause ends in April
  • The average Chicago student loan balance is nearly $40,000
  • Recent legislation may have changed your options

As the Student Loan Pause winds down, inflation and unemployment plague millions of Americans. On top of skyrocketing prices on everything from utilities to groceries, bills for student loan repayment programs begin again in May 2022.

It’s been almost two years since legislation placed a pause on student loan payments. The cost of living has risen dramatically since the pandemic began and outpaces wage increases. The average student loan debt in Cook County, IL is nearly $38,000 and Illinois is ranked in the Top 10 states with the most student loan debt. The estimated average student loan balance in Chicago is almost $40,000.

Student loan law is a complex, fast-evolving legal area. Getting help from a student loan lawyer with the experience and specific training in student loans can ensure you understand the best way to move forward and deal with your loans.

Student Loan Servicers

  • Millions of student loan borrowers have a new servicer
  • You may have to change the electronic payment information
  • You might need to find your login/password

Student loan servicers are the companies that handle the collection of student loan payments for the federal government. There has been a shake-up among servicers since The Pause, and you may have a new servicer when you get your next bill.

If you used to send payments to Navient, you might now get bills from Maximum. If Granite State handled your loans, they will now likely be serviced by Edfinancial. These changes took place at the end of January. According to Federal Student Aid, if you have not received notification about the change or don’t know your student loan servicer, you can log into your account dashboard or call 1-800-433-3243.

Any automatic payments you had set up with your old servicer will not transfer, so you’ll need to create a new account. If you need to request an additional forbearance or want to change your payment plan, you must go through the new servicer.

Choosing the Right Student Loan Repayment Plan

Between Illinois-specific options and the federal programs, there are more than a dozen student loan repayment plans and options such as consolidation and rehabilitation that might help you get back on track with payments. Depending on your career path and situation, you could be eligible for forgiveness or discharge.

Your Chicago Student Loan Debt Relief Options

Although student loan servicers might be able to tell you about the different repayment plans you qualify for, they may not know about the long-term consequences of those plans. If you struggle with mortgage payments or overwhelming debt, student loans may be only one part of your financial troubles. Contact Benjamin Law and schedule a student loan analysis. Kevin can determine which consumer debt relief options best fit your circumstances and help you take back financial control.

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