📝 Student Loan Changes: How to Stay Ready
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📰 Interesting financial news
Getting to Europe is cheaper this summer — but everything costs more when you’re there. (CNBC)
Refinance applications surge as mortgage interest rates tick down. (USA Today)
📈 What’s popping in the stock market
Uber shares climb to all-time high amid expanding services. (Ticker Symbol: UBER)
Roblox Stock Jumped Almost 21% Higher in June. (Ticker Symbol: RBLX)
📝 Preparing for potential student loan changes
There may be updates ahead regarding how student loans are managed, as there’s been discussion about restructuring or even eliminating the Department of Education (DOE).
Since the DOE currently oversees key aspects like loan servicing, repayment, and forgiveness programs, any changes could shift these responsibilities to other government agencies or private companies.
While the details are still unfolding, now is a great time to be proactive. Staying informed and taking small steps to prepare can help ensure you’re ready—no matter what changes come.
If you have student loans, here are two smart actions you can take:
First, prepare for any upcoming shifts.
Second, continue making progress on your repayment goals.
Protecting yourself from student loan changes
Here’s how you can take practical steps to manage your student loans with more clarity and peace of mind.
1. Understand your loan
When you understand your loan, like knowing the side streets during rush hour, you’re less likely to run into complications or make errors. Key information to know includes:
Your loan type
Your loan servicer (the company that manages your loan)
The amount you initially borrowed before interest
Your current balance
Your interest rate and whether it’s fixed or variable
Payment due dates
We know that reviewing this info and reminding yourself you're in debt isn’t fun. However, if any changes occur with loan servicers, interest rates, and repayment terms, knowing all your loan information will make transitions easier.
If you already know how things are supposed to be, you’re less likely to know when something seems off, you’ll know who to contact if anything changes, and you can adjust your budget accordingly.
2. Download and save your loan records
Make sure you have a record of everything by downloading your loan information. Log in to StudentAid.gov and download your loan data file (NSLDS file). This includes your balance, loan types, servicer, and payment history.
Additionally, download your monthly statements from your servicer’s portal and save everything to a secure file on your computer or hard drive.
3. Keep track of PSLF and IDR progress
If you're part of Public Service Loan Forgiveness (PSLF) or using Income-Driven Repayment (IDR), be sure to save your qualifying payment and certification forms.
Also, take screenshots of your progress reports, especially during periods of servicing disruption. Having photo evidence will help keep your repayment on track.
4. Verify your loan servicer’s contact info
You may not want to know more about the people you owe money to, but in this case, it’s essential. Keep your loan servicer’s name, contact information, and a point of contact on file. That way, if anything changes, you know who to call.
You can find your federal student loan servicer by logging into your Federal Student Aid account. If you have private loans, contact your lender directly.
5. Watch for program changes
With pending changes, there’s likely to be both accurate and misleading information floating around. Avoid unnecessary panic by monitoring updates from the Department of Education. Bookmark their website and sign up for their newsletters.
Always verify any claims you see on social media and make sure your information is coming from reliable sources.
6. Be wary of scams
Scammers prey on confusion and stress. Stay alert. Here’s how to protect yourself:
Never share your FSA ID, Social Security number, or banking details with unsolicited callers, emails, or text messages.
Only use official websites like StudentAid.gov for federal student loan management.
Double-check that you’re interacting with your verified loan servicer. Look for official websites and verified communication channels.
Be cautious of similar-looking websites or third-party services pretending to be official.
If you receive a suspicious email or link, don’t click it. Contact your servicer directly to confirm.
7. Make debt payoff a priority
Hopefully, as you’re reading, you’re starting to feel more prepared. But let’s be honest, there’s still a part of you that wishes you didn’t have to deal with student loans at all.
To save yourself future hassle, we recommend focusing on paying off your student loans as quickly as possible.
Here are a few strategies to speed up repayment:
Cut unnecessary expenses
Review your monthly budget and identify where you can reduce spending. This might include dining out less and creating a meal plan to eat a home. You could also cancel unused subscriptions or shop store-brand items. Every dollar saved can go toward your loan.
Take on a side hustle
Freelance, deliver food, sell crafts, or offer services like tutoring or dog walking, there are many opportunities to start a side hustle.
Once you get your business up and running, create a system to put any extra money you earn from your side hustle towards your loan payments. This could be funneling funds from your side hustle into a separate account or automating your payments.
Optimize your budget
Create or adjust your budget so you can start paying more than the minimum on your student loans. This might be lowering your budget for shopping and putting an extra $20 or $50 towards your loan payment.
If you use a percentage style budget, consider where 70% goes to expenses, 20% to savings, and 10% to debt payments, consider an adjustment of 60% to expenses, 10% savings, and 30% towards debt.
Research forgiveness programs
Look into federal and state forgiveness programs. Even if you don’t qualify, it’s worth understanding your options.
Create a repayment plan
A debt repayment plan is the best way to ensure you stay focus on your goal of eliminating your student loan debt. Follow these steps to create your plan.
A list of all loans
A realistic payoff date
Extra payment amounts
Automated payments
Regular check-ins on your progress
Living debt-free is possible with time, patience, and strategy.
Since the start of the year, there have been many changes within the U.S. government. Even here at Clever Girl Finance have felt overwhelmed at times. But the most important thing to remember is what you can control.
No matter what happens in the economy, you can control how you spend your time, what you focus on, and how you manage your money.
Focus on what you can do, and you’ll be better equipped to handle whatever changes come. And remember, we’re here to help you along your financial journey.
Need more support? Enroll in our free course on mastering your student loans.
🥰 Team CGF’s Amazon Favs: Books to get past debt!
Debt is like that ugly chair in your living room that you know you need to get rid of. It’s extra weight you carry everywhere. You don’t need or want it, but you’ve convinced yourself it’s here to stay.
We’re here to tell you otherwise. Here are some book recommendations to help you break free from debt for good:
P.S. If you make a purchase we may earn a commission, this helps us grow!
Get the Hell Out of Debt: The Proven 3-Phase Method That Will Radically Shift Your Relationship to Money
You’ve probably heard the same messages about getting out of debt, consolidating, and refinancing. You might be like author Erin Skye Kelly, who followed the typical advice and ended up with even more debt.
Kelly decided to figure out her own way to pay off debt, and once she became debt-free, other women joined her on their own debt-free journeys.
If you’re looking for advice on paying off debt that’s geared toward women, is non-judgmental, and comes from someone who isn’t some buttoned-up rich guy, then Get the Hell Out of Debt is for you. This book walks you through three crucial steps to help you not only pay off debt but also build wealth.
Debt-Free Living in 3 Steps: How to Get Out and Stay Out of Crushing Debt Fast With Simple Changes You Can Implement Over the Next 7 Days
Who says getting out of debt has to be complicated? Not author Terrance Thompson. He believes that even if you’re living paycheck to paycheck, you can get out of debt.
In his book Debt-Free Living in 3 Steps, he shares the little-known knowledge of how people who are “good” with money maintain their lifestyles.
More then just learning how to get out of debt, you’ll also learn:
Why you overspend and can't control it
How society keeps you in debt, enriching banks
Simple strategies to replace poor money management with healthy financial habits
The 7 types of debt and which ones are truly dangerous
Credit cards and a false sense of security: stop spending money you don’t have
The psychology of debt and how to cultivate an abundance mindset
Whether saving and cutting expenses is the best way to get out of debt
A foolproof strategy for avoiding financial temptations
Strategies for ensuring your long-term financial stability and happiness
And much more!
If you’ve been telling yourself that getting out of debt is impossible, this book will make you believe otherwise.
How to Be Debt-Free: A Simple Plan for Paying Off Debt
Take control of your debt and reclaim your financial future. No gimmicks, tricks, or fads How to Be Debt Free offers proven strategies that empower you to conquer debt and build lasting wealth.
This essential guide will equip you with the knowledge and tools to:
Understand your debt by learning the difference between good and bad debt
Implement effective strategies by learning how much money you should allocate to debt repayment
Avoid common pitfalls
Protect your assets with insurance
Plan your next steps by charting your course toward wealth once you've achieved debt-free living
Say goodbye to the stress, shame, and embarrassment associated with student loans, mortgages, car loans, and credit card balances. This straightforward approach will help you eliminate them all.
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