January 28, 2022 marked my one year anniversary of paying off my student loans . Reflecting back on choosing to pay off my student loans leaves me with several take a ways that I want to share with you! In September 2020 I decided to become debt free by utilizing the debt snowball method to pay off all my debt. Before this I had struggled to save and really understand basic financial principles. As a first-generation college student, I received a scholarship to attend undergrad for free, but the scholarship did not cover summers. During the summers I took out student loans to cover costs without paying interest rates or how much I was taking out. By the end of undergrad I had amassed a little under $17K. Fast forward to graduate school I received another scholarship that covered my education. At the time I was a teacher in a new very expensive city and I had missed the cutoff to have my paycheck last me throughout the summer. So, I decided to take out a loan for two summers to keep
Hey Guys! So two weeks ago tomorrow I paid off my
student loans! That’s right they are completely gone! But on the morning of I
got an email that my loans were about to be transferred to another loan holder!
You can imagine my panic when I went in to make my last payment and couldn’t! I
was so upset before I realized that while I couldn’t make a payment I could do
a loan payoff. With many student loan holders choosing to no longer service
student loans here are a few tips on what to do if your student loans are being
transferred.
Figure 1: This is a thumbnail of my latest YouTube video “Student Loans Transferred to a New Loan Servicer?” where I am seated in my office wearing a green dress and smiling at the camera.
1. Print
ALL documents AND save them to the cloud.
While I’m sure loan
holders are doing everything in their power to ensure that your balance is
correct I would recommend that you print every document that you find to place
in a file in case something goes wrong. I also recommend utilizing the cloud
i.e. Google Drive to save important documents as well.
2. Update
your contact information.
Make sure that your phone
number, address, and email are up to date. This way you don’t miss any
important updates from your new loan servicer. Your new loan servicer will
reach out via whatever contact information that is on file with your current
loan servicer.
Figure 2: This is a screenshot of the letter that I was sent from FedLoan saying that my loans were transferring. The letter lists my balance and the next actions that I should take.
1. Set
up a new account.
You will need to set up a new account with your new
loan servicer. Be sure to do this after they contact you.
2. Do
not ignore that your student loans are being transferred!
I get it you’re not paying on your student loans for
whatever reason. This doesn’t mean ignore communication about them though. As
we all know student loans can rear their ugly head at the most inopportune time
so stay on top of things!
Figure 3: This is a photo that says “MOHELA” in green letters. There is an apple next to the “M”.
Did your loan servicer change? Was it an easy process?
Any other tips that I missed? Let me know in the comments! Also, be sure to
check out my new video with more
tips on what to do if your student loans are switching servicers. Don’t forget
to sign up for my newsletter
so you don’t miss a beat! Bbyyeee!
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