Student Loan Sunsetting? Here's How to Deal.

If you’re one of the millions of people who have been notified that your student loan repayment plan is going away, you know that your payments could soon be skyrocketing. If you’re on the SAVE student loan repayment plan, you have 90 days from the time you’re notified to choose a new option, or you’ll be automatically moved to another plan. It’s important to check out your choices now so you can find the best one for you.

What If I Haven’t Been Notified? How Do I Know What Loan I Have?

If you haven’t been notified, or simply aren’t sure whether you’re on the SAVE plan or not, contact your lender – they might have old contact information! If you’re not sure who your servicer is, log into studentaid.gov to find out. You’ll need your FSA ID to sign in. On your dashboard, you can see your servicer’s name and a link to their website, view your loan details, and find other options. Another way to get in touch with all loan servicers is to call 1-800-4-FED-AID.

The Impact and Your Choices

First, know you’re not alone. The One Big Beautiful Bill Act is changing the way 7.5 million people pay for college and manage student loans – including borrowers with loans in repayment. You have several federal repayment plans to choose from at studentaid.gov. You can also consider private loan options, as the landscape may have changed since you first borrowed.

What to Consider

Borrowers with new higher monthly payments may want to re-evaluate their options. Some tips on finding a new student loan repayment plan:

• Review your current rates and balance.
  • Then compare with other plans, checking rates, fees, and benefits. Your Financial Institution may want to do a soft pull on your credit score to help determine your payment and term. This won’t hurt your credit, but is needed to give you a more accurate number. Make sure rates and fees are based on the same conditions and requirements.
  • Ask if loan rates are fixed (same payment forever) or variable (rates can fluctuate).
  • Be sure you’re comparing the same terms. Is it a 5-year loan or a 20-year loan?
  • Compare total interest in addition to monthly payments.
  • Be sure to include any fees – such as application fees – in your comparison.
• Consider the benefits of different types of loans. For example, federal student loans come with certain benefits like loan forgiveness and income-based options. They also reward using auto pay for certain types of loans with a discount on your interest rate.
• Think outside the box. Private loan choices include student loans, but could also include home equity, auto, or personal loans, depending on your personal situation.
• Evaluate refinancing. Refinancing can save you thousands if loan rates have dropped.
• Consider consolidation. If you have other loans, like a car loan, bundling your loans at the same financial institution might save you money in the long run. Bundling can also simplify your repayment planning.
• Read the fine print. For example, make sure there aren’t penalties for paying your loan off early.

Our FAQs offer more information about student loans, including the difference between federal and private student loans, and a closer look at the application process.

You’re not alone – millions are going through this change with you, and so far only around 400,000 have refinanced. We’re happy to help walk you through the options available to you at Levo – just call us at (605) 334-2471 or stop in.