ALBANY, N.Y. (NEWS10) — September marked the resumption of federal student loan interest accrual. With loan payments being due in October, the New York State Attorney General’s Office issued out some tips to New York borrowers on how to manage their federal student loans.
As borrowers prepare for the upcoming payments, the state has also urged that New Yorkers be cautious of scammers impersonating as student loan servicers. Below are some recommendations that the Attorney General’s Office suggests in order to be in the best position to manage your public federal student loan repayments:
- Make sure your contact information is updated on your loan servicer’s website.
- Update or set up your FSA account.
- Get an estimate of your upcoming payment amount, interest rate, and due date from your loan servicer.
- Check out DOE’s Loan Simulator to review your repayment plan options.
- Check if you are eligible for the Biden Administration’s new SAVE Plan. The repayment plan will cut monthly payments to $0 for millions of borrowers making $32,800 or less, or $67,500 for a family of four, and will save all other borrowers at least $1,000 per year.
- Research an Income-Driven Repayment Plan if you believe that your payments will be too high.
- Sign up for auto-debit payments.
- Avoid scams: The DOE and loan servicers will not be calling you by phone and will not be asking you for your social security number.
- Do not give your personal information, including your FSA ID username or password, over the phone or internet unless you initiated the contact.
- Beware of companies that promise to help you manage or reduce your student loan repayment for a fee. Many of these companies are charging fees for services that your federal loan servicer provides for free or that you can complete on your own.
“With federal student loan payments resuming in October, there is a lot of anxiety and confusion from students, borrowers, and families,” said Attorney General Letitia James. “To help address this situation, I encourage New Yorkers to follow these tips to better manage their federal student loans and take advantage of programs meant to alleviate the burdens of student debt. I also urge borrowers to be wary of scammers claiming to help relieve student debt. Anyone who believes they have been a victim of a student debt relief scam should contact my office immediately.”
Anyone with questions regarding their servicer can visit the U.S. Department of Education’s Federal Student Aid website. Any New Yorker who believes they have been a victim of a student debt relief scam should contact the Attorney General’s Office at 1-800-771-7755, or by filing a complaint online.