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3 Costly Student Loan Repayment Mistakes and How to Dodge Them

With the pause on student loans lifted, many graduates are finding themselves managing their loan payments again. If you’re in this situation, it’s crucial to know the difficulties that could arise and how to handle them, from long wait times when contacting loan servicers to dealing with inaccurate billing.

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Long Wait Times When Calling Loan Servicers

Imagine trying to call someone and being put on hold for over an hour—that’s what many borrowers are facing today. The time it takes to reach a customer service representative has shot up recently, and it can be super frustrating.

What can you do? Start by reaching out early to your loan servicer through the Federal Student Aid platform. Create your account and try to use all possible ways of communication like email, chat, or even regular mail. Keep a record of all your interactions in case you need evidence later.

Delays in Income-Driven Repayment Plan Applications

There are plans out there, like the “SAVE” plan, designed to help borrowers by tying payments to their income and not letting interest get out of control. However, many people are waiting a long time to get their applications for these plans processed.

What can you do? Be proactive. Make a budget and decide how you’re going to tackle your student loans. Keep your documents in check and be prepared for any possible delays by adjusting your financial plans.

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Inaccurate Billing Information

Some borrowers are fighting an uphill battle with mistakes on their loan statements. Whether it’s being overcharged or dealing with confused loan details, it’s an added stress.

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What can you do? Review your statements closely. If you find any errors, write them down and contact your loan servicer with evidence. Don’t forget to send a formal letter after the initial contact, and keep a copy for yourself. Patience is key, but if the problem isn’t solved, escalate it by contacting higher-ups or filing a complaint.

Additional Strategies for Managing Student Loan Challenges

  • Be Patient and Use Different Contact Methods: Persistence is crucial, and trying different ways of making contact could break through the communication barrier.

  • Stay Informed: The government, including the Biden Administration and the Department of Education, is focused on making this process as smooth as possible. Keep yourself updated on any changes and developments in student loan policies.

Remember, although it might be a tough journey to navigate your student loan payments, by staying organized, well-informed, and proactive, you can stay on top of it and work towards financial freedom. It might be a challenge, but with the right strategy and tools, it’s possible to manage your student loans effectively.

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