Prepare Now: How the Student Loan Restart Affects Homeowners

Student Loan Repayment Options - CARES Act

Navigating the Waters: Unpausing Student Loan Payments and Protecting Your Home

In March 2020, the unforeseen hit our doorsteps, the COVID-19 pandemic, and with it came a host of financial uncertainties. As a relief measure, the federal government through the CARES Act placed a pause on federal student loan payments, a pause that has been extended several times till now. As of August 29, 2023, this pause is set to end, heralding the resumption of student loan interest and payments come September 1 and October 2023, respectively. 


For homeowners, this shift could spell an increase in monthly expenses, potentially straining family budgets. But amidst the looming financial clouds, there lies a silver lining, a way to not only navigate through the rising expenses but possibly reduce the financial burden significantly.

Understanding The Impending Change

The Good News: Tailoring Your Repayment Strategy

There are resources available to potentially alleviate the student loan burden:

Caution: The Hidden Traps of Private Student Loan Fixes

Many companies out there offer plans to combine all your student loans into one private loan, which might seem like a good idea at first. They promise lower payments every month or lower interest, which sounds great! But, there’s a catch.


When you switch to a private loan, you say goodbye to some really helpful benefits that come with federal student loans. Federal loans have special plans that can make your monthly payments match what you earn, which means if you don’t earn a lot, your payments could be lower. They even have a way to pause your payments temporarily if you run into money troubles.

 

Now, when you move to a private loan, these good features go away. Private loans can be very strict, without room to change your payment plan if things get tough. Also, the promise of lower interest rates might not be true for everyone, especially if you don’t have a really good credit score. So, it’s like you’re trading a friendlier loan for a stricter one, and you might end up paying more in the end. It’s really important to get advice and understand what you’re getting into before making a big decision like this.

Consider Your Total Financial Picture

Homeowners facing mounting credit card debt or adjustable rate lines of credit might find it beneficial to:

Take Control: Reach Out for Expert Guidance

The financial landscape is complex, and a one-on-one review of your situation could unveil tailored solutions. That’s why it’s crucial to contact a knowledgeable mortgage loan officer to:

  • Review the numbers meticulously.
  • Explore all available options empowering you to make informed financial decisions.

Though the sudden increase in monthly expenses might feel overwhelming, knowing all your options and planning accordingly can offer peace of mind. With expert guidance, we can steer through these financial waters, avoiding surprises and safeguarding your family’s financial health and well-being.

At Michigan Mortgage Solutions, we stand ready to assist. Our goal is to ensure you’re equipped with the knowledge and resources needed to make sound financial decisions amidst changing circumstances. The storm might be approaching, but together, we can not only weather it but come out stronger on the other side.

Here are some resources where you can find information about federal student loan servicers:

Federal Student Aid: This is the official website where you can find your loan servicer by visiting your account dashboard or by calling the Federal Student Aid Information Center at 1-800-433-3243. 

Visit Federal Student Aid – https://studentaid.gov/manage-loans/repayment/servicers

The College Investor: This site provides an updated list of federal student loan servicers as of October 12, 2023. The list includes servicers like Aidvantage, Ascendium, Aspire Resources Inc., Central Research, CornerStone, ESA/EdFinancial, FedLoan Servicing (PHEAA), and many more.

Visit The College Investor: https://thecollegeinvestor.com/9892/the-complete-list-of-federal-student-loan-servicers/

NerdWallet: This site also provides information on how to get in touch with loan servicer contact centers by calling 1-800-4-FED-AID.

Visit NerdWallet: https://www.nerdwallet.com/article/loans/student-loans/who-is-my-loan-servicer

Please note that the information about loan servicers can change, so it’s a good idea to check these resources for the most current information.

Understanding your loan servicer is crucial, especially if you’re planning to buy a home in the future. Knowing who manages your student loans can help you better plan your finances, which is essential when applying for a mortgage. Would you like more information on how student loans can impact your mortgage application?

Cheryl S
Cheryl S
05/01/2024
Jason was phenomenal to work with during my mortgage process. He guided me with ease from beginning to end . He had patience when I had questions and explained everything so clearly. I am thankful to Jason and the entire team for making this a pretty stressful free experience!! New Year, New Home! Thanks Jason!!
miss renee
miss renee
03/01/2024
Trevor was very knowledgeable and his expertise was Super helpful in putting me in the right direction!
Jillian Mitchell
Jillian Mitchell
17/11/2023
Great experience all around. Jason, Trevor and Yolanda are a great team and always are reassuring and helpful.
Reel Champs
Reel Champs
23/10/2023
Jason and the Michigan Mortgage solutions team was amazing. I ran to them out of desperation because I had a terrible experience with a bigger mortgage company. It was the best decision of my life and Jason worked with me seamlessly and got my family into our dream house in less than 45 days. Highly recommend them as your FIRST STOP, you won’t regret it.
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Michael Cordell
17/10/2023
I had a wonderful experience. The communication at every step along the process was exceptional. My contact went above and beyond and answered my questions at all times. Thank you,
Sanya Ross
Sanya Ross
29/09/2023
Jason was knowledgeable and always available. Made me feel at ease with such a huge purchase, I asked tons of questions and he never made me feel like it was a problem. I appreciate everything he did to make my first home purchase a success and I will refer all my friends and family to Michigan mortgage solutions!! Thank you again!
Jack Condrige
Jack Condrige
26/09/2023
Great experience. Very personal service.
Kyla Wilberding
Kyla Wilberding
20/09/2023
Can't say enough good things about Jason and his team. They made my first home buying experience quick, easy, and stress free. They communicated flawlessly and explained every step of the process, would recommend to anyone! Closed on my house in less than a month.
Tony Pliva
Tony Pliva
25/08/2023
Worked with Jason and his team for about a year before we found a home we wanted. The whole process was smooth and easy. Definitely recommend to anyone getting a mortgage!

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