As a recent college graduate, you may feel overwhelmed by the weight of your student loan debt. It's no secret that student loans can be a significant financial burden, impacting your ability to save for the future and achieve financial stability. The past few years have been filled with uncertainty and changing policies regarding federal student loans. The pause on payments and interest since the start of the COVID-19 pandemic provided temporary relief for borrowers; however, with the recent expiration of the extension, it's time to reassess your student loan situation. Whether it's exploring refinancing options, understanding repayment plans, or seeking financial education resources, we are committed to assisting our members every step of the way.
Income-Driven Repayment Plan - SAVE
With student loan payments set to resume in October, a glimmer of hope is on the horizon with the introduction of a new income-driven repayment plan called Saving on a Valuable Education (SAVE). This plan aims to alleviate the financial burden by calculating monthly student loan payments based on income and family size. What sets the SAVE Plan apart is that it offers the lowest monthly payments of any IDR plan, and for some borrowers, it may even significantly lower or eliminate the required monthly payments. This is fantastic news for individuals and families struggling to make ends meet. It's important to note that additional benefits of the SAVE Plan will come into effect in 2024, providing even more relief for borrowers.
Qualifying for SAVE
So, how do you qualify for this relief? Borrowers must have federally held student loans to qualify for the SAVE repayment plan. These include Direct subsidized, unsubsidized, consolidated loans, and PLUS loans for graduate students. Borrowers already enrolled in the REPAYE repayment plan will automatically switch to the new Saving on a Valuable Education (SAVE) Plan. This plan is designed to provide much-needed relief by calculating monthly student loan payments based on income and family size.
However, borrowers who still need to enroll in REPAYE can switch to it now to ensure their account transitions to SAVE later this summer. Borrowers can reach out to their loan servicer or submit a request through their Federal Student Aid account. Alternatively, borrowers can wait until the application for the SAVE Plan becomes available later this summer. Regardless of the path they choose, the introduction of the SAVE Plan brings much-needed support to those burdened by student loan debt.
How We Can Help
One way Vermont Federal Credit Union can help you manage your student loans is through loan consolidation. Consolidating your loans can simplify your payments by combining your multiple loans into one, making it easier to keep track of your payments and potentially lowering your interest rates. Vermont Federal Credit Union offers competitive rates and flexible terms to help you find a consolidation loan that suits your unique financial situation.
Another valuable resource that Vermont Federal Credit Union offers is financial counseling. Our team can help you manage your debt and create savings strategies to help you make informed financial decisions. We understand that every borrower's situation is different, and we will work with you to find a repayment plan that works for you.
In addition to loan consolidation and financial counseling, Vermont Federal Credit Union also provides educational resources to help you better understand your student loans and your options for repayment. Our website offers a variety of tools and resources, including loan calculators, repayment guides, and frequently asked questions about student loans. We also provide workshops and seminars on financial literacy and debt management to help you take control of your finances.
It's essential to keep in mind that you're not alone in your struggle with student loan debt. Millions of Americans are in the same boat, and plenty of resources are available to help you. Don't hesitate to contact us or your loan servicer for personalized guidance and advice.
Contact us today to learn how to take control of your student loan debt and achieve financial stability.
About Vermont Federal Credit Union
Vermont Federal Credit Union is a $900 million-plus full-service, not-for-profit, cooperative financial institution that has served Vermonters for more than 70 years, with eight locations currently serving over 50,000 members. Members are part of a cooperative, meaning they share ownership in the Credit Union and elect a volunteer board of directors. Vermont Federal Credit Union provides membership to anyone who lives, works, worships, or attends school in all of Vermont. Vermont Federal Credit Union is committed to supporting its communities and helping Vermonters prosper, no matter where they may be on life’s journey. Learn more about Vermont Federal Credit Union.