Federal student loan interest has started accruing again. Here's what you need to know
Interest on federal student loans has started accumulating again after a three-year pause because of the COVID-19 pandemic
NEW YORK — Interest on federal student loans has started accumulating again after a three-year pause because of the COVID-19 pandemic.
You still have at least another month before you'll need to start paying back your loans, so don't panic.
Here's what you need to know about your student loans:
WHERE DO I START?
The first step is to log in to your StudentAid.gov account and check who your loan servicer is. Many loan servicers changed during the pandemic, so you might have a different one than you did back in March 2020.
Once you know your loan servicer, you'll log into your account with them to access your student loan balance, monthly payment amount and interest rate.
Betsy Mayotte, president of The Institute of Student Loan Advisors, recommends updating your personal information in your account with your loan servicer to make sure you receive all important correspondence.
HOW DO I FIND OUT MY INTEREST RATE?
Interest rates have risen significantly since the pandemic, but most borrowers with federal student loans will still have the same interest rate as before the payment pause. The rate might have changed if, for example, you consolidated your loans during the pandemic. If you are unsure if your interest rate has changed, you can check your account online.
HOW DO I KNOW WHAT MY PAYMENTS WILL BE?
Borrowers can find out what their monthly student loan payment will be on their account with their loan servicer. If you don't know who your servicer is, you can find it by logging in your studentaid.gov account.
WHAT IF MY PAYMENTS ARE TOO HIGH?
If you think you'll have a hard time making payments
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