Student Loan Repay
We all knew the day would come, and it’s now official: the Covid-19-related administrative pause has ended on federal student loan interest rates and payments. Here are some things to consider as this transition takes effect:
Pay on time. Whether you’re already a homeowner or will be in the future, keeping and improving your credit score is critical to getting the best financing possible. Late payments on student loans can ding your credit score, and failing to pay altogether could have significant impact on your ability to acquire future mortgage loans.
A scam is a scam is a scam. While there are legitimate loan forgiveness opportunities available for eligible borrowers (namely Public Service Loan Forgiveness, Teacher Loan Forgiveness, and Income-Driven 20 or 25 Year Repayment Plans that forgive remaining balances after all required qualifying payments have been made), scammers are also very real. Some key things to look out for whenever you’re contacted about loan forgiveness opportunities are:
- Language that elicits emotional responses, such as “act now,” “call now,” or “student alert!”
- Promises that are too good to be true
- Requests for personal log-in details
- For more details, check out this Federal Student Aid article on scams
A home refinance may help. Depending on your circumstances, it may be a Herculean effort to figure out how to integrate an additional hefty monthly payment into your already-lean budget. Or maybe you’ve built up some equity and you’d rather pay off the loans instead of having to scrimp on other areas or take on a second job. Fannie Mae has a special cash-out refinance specifically for paying off student debt, and we’re here to partner with you to take advantage of this option. For more details, click here to check out our flyer or find a mortgage banker in your area.
The more you know the better. There’s no shame in seeking advice from financial professionals. If you’re not sure how to navigate repayment, or you want help considering your different options, contact a reputable financial advisor. If you need help finding someone, don’t hesitate to reach out. We’re here to help too.
While it can take some time and effort to get back into the rhythm of student loan repayment, it’s always best to be proactive sooner rather than later. And the good news is, you’ve got options!
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Primis Mortgage Company (“Primis Mortgage”) is a subsidiary of Primis Bank, a Member FDIC. Primis Mortgage NMLS #1894879 | BK #1042893 | ML #1894879 (www.nmlsconsumeraccess.org). As always, all loans are subject to credit approval and product guidelines. Equal housing lender.