Need to refinance your student loans? Here’s tips for end of payment pause

If you’ve enjoyed a vacation from your student loans thanks to the federal government’s extended pause on these payments, it’s important to shift gears and start prepping for what comes next , as the current pause lifts after December 31, 2022. Missing a loan payment has consequences, and before the pandemic, when borrowers were late with a student loan payment, they were most likely to be late with the very first payment at the end of the 6-month grace period you get after graduation. To avoid a similar effect with the restart of repayment, you want to be on time with payments and have a plan for making future ones , too. I’ve advised generations of students on how best to handle student loan payments and I’m regularly called upon by leading newspapers and magazines for guidance on this complex subject. My checklist can help you stay on the right path, whether you’re resuming federal loan payments, brand new to paying off your student loans or even paying off private loans. The resumption of payments might seem like bad news, but here’s the bright side: The Biden administration’s “fresh start” initiative will return all federal student loans to a current status, even if they were delinquent or in default before the pandemic. The delinquencies and defaults will be removed from your credit history. You could end up with a higher credit score which may enable you to qualify for new credit or to pay a lower interest rate on your current loans. Here are the most important actions you can take starting now:

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