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Student Loan Repayment Resumes: Here's How To Prepare

As the pause on student loan repayments comes to an end, it's crucial to be prepared for the financial responsibilities that lie ahead. After a three-year moratorium, federal
student loans are scheduled to resume in October
, and interest on student loans will begin accruing in September. Understanding the necessary steps for successful repayment is crucial.

To help you navigate the repayment process with ease and convenience, we have partnered with Changed, a revolutionary mobile app that offers a convenient and effective solution for debt management. With Changed, you can take control of your student loans and streamline your debt management in the most efficient way possible.

Here are five steps you need to take to get prepared.

Step 1: Assess Your Student Loan Situation

As payments were paused for over three years, several lenders managing student loans have ceased operations, leading to millions of borrowers experiencing transitions to a new loan servicer. To navigate this change effectively, it is crucial to identify your new loan servicer. Start by gathering all the necessary information about your student loans, including loan amounts, interest rates, and repayment terms. Borrowers can check who their new servicer is by logging in to

Step 2: Create a Budget

Establishing a budget is key to managing your finances and ensuring you have enough funds to cover your student loan payments. Track your income and expenses, prioritize your loan payments, and identify areas where you can cut back on unnecessary expenses.

If you're facing challenges meeting your monthly student loan obligations, it's worth exploring income-driven repayment (IDR) plans as an alternative before payments resume. These plans offer federal borrowers options beyond forbearance and are designed to align payments with your income level.

Here are four IDR plans to consider:

1. The Saving on a Valuable Education (SAVE) Plan
2. Pay As You Earn Repayment (PAYE) Plan
3. Income-Based Repayment (IBR) Plan
4. Income-Contingent Repayment (ICR) Plan

IDR plans utilize specific formulas that calculate your monthly payments based on your adjusted gross income and family size. They also provide a pathway to potential loan forgiveness. It's worth noting that many federal student loan borrowers may qualify for multiple IDR plans. For more information on IDR plans, visit

Step 3: Explore Relief Programs and Proposed Changes

If your student loan payments are difficult to fit into your budget, don't worry--there are relief programs and proposed changes that can help.

New 'On-Ramp' Program: President Biden has introduced a 12-month "on-ramp" initiative specifically designed for borrowers transitioning from the student loan pause to repayment. During this extended grace period, missed, partial, or late payments won't have negative consequences such as credit reporting, default, or loans being sent to collection agencies.

However, please note that missed payments during the on-ramp period will not count toward loan forgiveness under income-driven repayment plans or Public Service Loan Forgiveness (PSLF). Stay informed about this program to make the most of the relief it provides.

Step 4: Restore Your Loan Status with the Fresh Start Program

If you find yourself in default on your federal student loans, there's hope through the Fresh Start program. This initiative offers a one-time, temporary pathway for borrowers to return to good standing and regain control of their financial future.

Restoring defaulted federal student loans to good standing is crucial for accessing key federal loan forgiveness programs, including Public Service Loan Forgiveness (PSLF) and the benefits of the IDR Account Adjustment.

The Fresh Start program will be available for one year after the payment pause ends, just like the on-ramp transition period. During this time, borrowers in default will receive vital protection from collections efforts, financial

Step 5: Set up Automatic Payments

Simplify your student loan repayment process by enrolling in automatic payments. By setting up autopay, you can enjoy the following advantages:

Setting up automatic payments eliminates the need to manually initiate payments each month, saving you time and effort. With payments automatically deducted from your account, you can ensure timely payments without the hassle of remembering due dates.

By enrolling in automatic payments, you can avoid late fees and penalties that may result from missed or delayed payments. With payments consistently made on time, you can maintain a good repayment record and protect your credit standing.

The Changed app allows you to do all of these things in the most convenient and
effective way.

Download the app today to get started!

The iOS app for MSUFCU The Android app for MSUFCU

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