Forbearance Isn’t Forever: How 6 Student Loan Borrowers Prepare to Pay

For many recent graduates, student loan payments can feel like a burden that will never go away. However, the reality is that forbearance isn’t a permanent solution, and eventually, borrowers will need to start repaying their loans. To avoid falling into default, it’s important for borrowers to start preparing for repayment as soon as possible.

We spoke with six student loan borrowers to hear how they are preparing to start repaying their loans. Here are some of the strategies they are using:

1. Budgeting: One of the most important steps in preparing for repayment is creating a budget. By outlining their income and expenses, borrowers can get a clear picture of how much they can afford to put towards their loan payments each month.

2. Seeking Financial Assistance: Some borrowers are looking into options for financial assistance, such as income-driven repayment plans or loan forgiveness programs. By exploring these options, borrowers may be able to lower their monthly payments or even have a portion of their loans forgiven.

3. Increasing Income: Many borrowers are taking on additional work or side gigs to increase their income. By boosting their earnings, borrowers can have more money to put towards their loan payments each month.

4. Cutting Expenses: To free up more money for loan payments, some borrowers are cutting back on discretionary spending. This might involve cooking at home more often, canceling subscription services, or finding other ways to reduce expenses.

5. Setting Up Automatic Payments: To ensure that they never miss a payment, some borrowers are setting up automatic payments for their loans. By automating their payments, borrowers can avoid late fees and keep their credit in good standing.

6. Seeking Support: Finally, some borrowers are seeking support from financial advisors or loan counselors. These experts can provide guidance on the best repayment options for each borrower’s individual situation, as well as offer tips for managing debt effectively.

Overall, the key to successfully preparing for loan repayment is to start early and be proactive. By creating a budget, exploring financial assistance options, increasing income, cutting expenses, setting up automatic payments, and seeking support, borrowers can set themselves up for a successful repayment journey. Remember, forbearance isn’t forever – but with the right strategies in place, borrowers can tackle their student loan debt and move towards a financially secure future.