If you’re a government worker, you’re probably a bit worried right now. As we currently wade through the longest government shutdown in history, there are no answers in sight. As another day comes in goes, government workers remain unsure how they’re going pay their bills. Rent, utilities, and even their student loan debt payments are in limbo.
We’ve rallied on here many times at Financial Helpers about making your monthly payments on time. Becoming delinquent on your student loan debt is a dangerous game you don’t want to play. As a service worker and federal employee, that’s even truer. You have to stick to the plan to receive full student loan forgiveness.
But, when do you do when the government shuts down, a situation completely outside of your control? It’s understandable that you’re going to fall behind on your payments, but there are other things you can do. Here are three steps you can take to show you’re trying to remain current on your student loan debt:
Step One: Remain Proactive about Your Student Loan Debt
Your student loan servicer has millions of people like you they’re trying to keep track of. You know your situation, but they may not. Do not just assume they know you’re a government worker. There are a number of mortgage, credit card, and student loan debt companies out there right now offering relief assistance.
By not saying anything and ignoring the situation, you could be setting yourself up for disaster. Always keep in touch with your servicer and relay any financial hardship you might be facing. More often than not, they will do what they can to help you. By not being proactive, your servicer probably won’t know about your situation.
Step Two: Review Your Federal Student Loan Options for Repayment
This goes along with step one. You have to remain proactive! Most people with student loan debt have the option of filing for a deferment or forbearance. There are several types of programs that can allow you to push off payments for a few months. To find the right one, you have to stay in contact with her servicer.
These options will give you a much-needed break from making student loan debt payments while furloughed. Still, this might not be the best option for you. While monthly payments are put off a few months, interest can still continue to pile on. That means even while furloughed, your total amount due can still continue to grow.
Step Three: Consider Other Repayment Options
It’s understandable that you’d rather put off making payments until your paychecks start coming back. You have other bills to pay that are more important to your survival. But, if you can swing it, the best option may be to continue making payments towards your student loan debt.
So, while going into deferment or forbearance might seem like a good idea, there are better options. Especially if you’re working towards Public Service Loan Forgiveness. A forbearance would not meet making qualified payments, so it would extend what you have to pay. You may find the benefits of an income-driven repayment plan better suited to your needs.
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You might even find a bank or credit union that offers interest-free loans that can help in an emergency. This loan would help fill in the gaps while you wait for the government to reopen. Yes, that means you’d have another loan to pay. But, since you’ll be getting back pay, you can use that money to pay back the loan.
Either way, call your servicer and discuss all options open to you! That’s the best course of action during this trying time.
