December 8, 2021

What is Student Loan Deferment and how does it affect me?

The U.S. Department of Education issued a nationwide pause on federal student loans during the COVID-19 pandemic to provide financial relief. If you have federal student loans and did not continue making payments throughout the deferment period, it’s time to plan and prepare to begin making payments on your remaining balance at your normal interest rate again as the deferment period is set to end May 1st, 2022.

Forgot your loan details?

It’s been a while since the student loan deferment was set in place, so you may not remember details on your loan such as your total monthly payment, how much you owe overall, and what your federal loan interest rate is. Log into your student loan servicer’s website or call your servicer to find that information. If you don’t know who your student loan servicer is, you can find out at by logging in, finding “My Aid” and selecting “View loan servicer details.”  

Checklist to Prepare for Loan Payment to Restart

Make sure your contact information with your loan provider is up to date. This will ensure you are not missing any important information regarding your student loans.

Use the Loan Simulator to help you calculate what your best repayment option is based on your current and future financial situation.

Take action if you want to lower your monthly payment. Consider an Income-Driven Repayment Plan if your payments are too high compared to your income.

Consider signing up for auto-payments through your FedLoan Servicing or reenable auto-payments to ensure you’re paying off your loans on time and regularly. You will need Forcht Bank’s routing number: 042108397, and your account number which can be found within Online Banking.

How We Can Help

As your financial partner, we encourage you to take advantage of our resources such as the Budgeting Tool found within Online Banking to help you create and execute a budget so you’re on the right track once student loan repayment begins.

Have you been putting money aside for student loan repayment? With a Forcht Bank savings account, you can conveniently set a little bit of money aside each paycheck to help you prepare for your payments.