What’s Changing With Your Credit and Student Loans

Hola friends,

This August brings some major changes you need to know. Before we dive into what I want to share, the best part about this renewed journey so far, is that I am learning again. I am learning not just for myself but for other professionals who are in similar situations.

Now on to this month's newsletter. If you've got student loans or you’ve been working on your credit, now’s the time to pay attention and pivot if needed.

1. Interest is back on for SAVE plan borrowers
If you're on the SAVE plan, your 0 percent interest is over. As of August 1, your loan balance will start growing again. This shift could hit hard if you're not making payments yet.

What to do: Log in to your loan servicer or StudentAid.gov and check your repayment plan. Use the Loan Simulator to compare options. PSLF folks, this forbearance time won’t count, so consider switching plans or looking into buyback options.

2. Student loan repayment rules are changing…again
A new law just passed and it’s flipping the student loan system. Old plans like PAYE and SAVE are being phased out. A new IBR plan (Income-Based Repayment) is taking their place, with fewer hoops to jump through. Plus, borrowing caps are now stricter for grad and Parent PLUS loans.

What to do: Review your current repayment plan. If you qualify for IBR, now might be the time to switch. If you're planning to borrow for grad school, know your new limits before signing that loan agreement.

3. Medical bills off credit reports. BNPL(Buy Now Pay Later loans) now counts.
Medical debts are being removed from credit reports and lenders can’t use them to make decisions. That’s a win. On the flip side, Buy Now Pay Later loans are being added to credit scoring models this fall.

What to do: Pull your credit report and make sure it's accurate. If you use BNPL, start paying those bills on time. Autopay is your friend. A missed $40 Klarna payment could cost you way more in credit damage.

Take 10 minutes this week to check your credit report and repayment plan. That one step can shift your next 6 months.

→ [Check your credit report for free at AnnualCreditReport.com]
→ [Schedule a full Financial Health Audit]
→ [Take a Mini Audit session]

P.S. Faith and Finance Renewed challenge will be back next month.