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Manage Your Mortgage Needs with O1ne Mortgage

Are you concerned about managing your mortgage payments? O1ne Mortgage is here to help. Call us at 213-732-3074 for any mortgage-related needs. Our team is ready to provide you with the best solutions tailored to your financial situation.

When Will the Federal Loan Payment Pause End?

Since March 2020, the federal student loan payment pause has been extended multiple times. However, with the recent law passed by Congress to raise the debt ceiling limit, further extensions are prohibited. As a result, federal student loans will start accruing interest again on September 1, 2023, and monthly payments will resume on October 1, 2023. If you have recently graduated, your student loan payments will follow a six-month grace period based on your graduation date.

What if I Can’t Afford My Student Loan Payments?

Approximately 20% of federal loan borrowers face financial challenges that make student loan payments difficult to manage. If you are worried about resuming payments in October, consider the following options:

Revamp Your Budget

Review your budget from the past few months and identify areas where you can cut back to make room for student loan payments. Consider eliminating unused streaming services or reducing spending on food delivery and dining out. If necessary, explore more significant changes like taking on a roommate or finding a more affordable place to live.

Increase Your Income

Look for opportunities to increase your monthly income. You might ask your employer about overtime, take on a second job, or start a side hustle. Evaluate your available time and skills to choose the best option for you.

Request Deferment

There are several types of federal student loan deferment available, including options for current students, unemployed borrowers, and those experiencing economic hardship. Contact your student loan servicer to see if you qualify. Note that interest may continue to accrue during deferment, except for direct subsidized loans, where the government covers the interest.

Seek Forbearance

Federal student loan forbearance allows you to pause your monthly payments for up to 12 months. You may qualify if you are facing financial difficulties, medical expenses, or employment changes. Keep in mind that interest will continue to accrue during forbearance, and the government does not subsidize it.

Check With Your Employer

Some employers offer student loan repayment assistance as a benefit. Check with your human resources department to see if this option is available to you and understand the requirements.

Get on an Income-Driven Repayment Plan

The federal government offers four income-driven repayment plans that can reduce your monthly payments to 10% to 20% of your discretionary income and extend your term to 20 or 25 years. At the end of the term, any remaining debt will be forgiven. Be aware that you will need to recertify your income annually, and your monthly payment may not cover accruing interest, potentially increasing your balance over time.

Consider All of Your Options for Student Loan Relief

While the student loan payment pause is ending, there are still several ways to get help with your monthly payments. Start by evaluating your financial situation to see if you can adjust your budget. If you are unsure about making ends meet, research and compare the different relief options available. Avoid missing payments to protect your credit score.

As you prepare for student loan payments to resume, monitor your credit regularly to understand how your actions impact your credit score and to manage potential issues as they arise.

For any mortgage-related needs, don’t hesitate to contact O1ne Mortgage at 213-732-3074. We are here to assist you with confidence and expertise.

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