Get Back in the Habit of Paying Student Loans Without the Effort

The Covid-19 Emergency Forbearance on federal student loans has been extended yet again—pending the legal action around the President’s $10k/$20k student debt cancellation—but with it ending sometime in the new year, millions of borrowers will soon need to start making payments again. For those who haven’t had to make a payment since 2020, it may feel a little strange to have to start thinking about making those payments again every month. Even if you won’t necessarily miss the money, it’s still one more thing to remember, and no one wants late fees!

Set Up Auto-Debit Ahead & Pay Student Loans On-Time

Borrowers, fortunately, have a tool that makes paying their student loans a little easier: auto-debit. By setting up auto-debit, you can link your bank account to your student loan servicer, ensuring your payments are automatically deducted each month. Now is a great time to set up auto-debit, which will mean that—when payments resume—you won’t have to worry about missing that first payment. It also means that, when interest starts accruing again, you’ll get a lower rate!

All you need to do is log in to your student loan servicer’s website (MOHELA, if you’re pursuing PSLF) and enter your bank account and routing numbers. If you so choose, you can opt to pay more than your required monthly payment, which will be applied to the principal, but we don’t recommend doing that if you’re going to apply for PSLF. 

It may not be sexy, but auto-debit is an invaluable feature that makes sure you’re up-to-date on your student loan payments—crucial if you’re pursuing Public Service Loan Forgiveness and want those payments counted!