Expect Interest Rates on Federal Student Loans to Rise

Borrowers should be on the lookout for updates from the Education Department or their loan servicers, said Betsy Mayotte, founder of the Institute of Student Loan Advisors, a nonprofit group. She suggested that borrowers check what their monthly payments will be once payments resume. (To do so, look on www.studentaid.gov). If the amount is too high, they can use the department’s online calculator to see if a different payment plan may be available.

Borrowers should also make sure their servicer has their correct contact information, she said. Open all correspondence promptly. “With all the moving parts and changes in the works with student loans right now,” she said, “it’s even more important for borrowers to ensure they are up to date on what their responsibilities are.”