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We all want to make the most of the student loan payment pause. Following these three steps will help you towards your financial goals.

3 Ways to Use Your Student Loan Payment Funds to Get Ahead

Question for you.

(Well, three to be exact). 

During these last 20+ months of Federal student loans payments being on pause…

1. Have you maximized your opportunities to make financial gains? 

2. Have you been delineating where your “student loan payments funds” are going? 

3. Can you confidently say your “student loan payment funds” have been given a purpose? 


If you answered NO to the above questions, this newsletter is for you!  If answered yes, keep reading as you might know someone who could take advantage of these strategies. #spreadtheknowledge

3 Steps to use your “student loan payment funds” to get ahead

We can’t control the debate of Student Loan Forgiveness, but we can make the best out of this continued opportunity. Do not let these next four months of opportunity slip away. 

NOTE: You must take action on these strategies as soon as possible.

1) Prepare

Understand and estimate your monthly payment 


Go to the Federal Student Aid website and access the Loan Simulator. Here you will calculate different repayment plans using your federal loan balances and potentially your income for various income-driven repayment plans. Here, you will be shown different monthly payment options, estimated total borrowing costs, and your pay off date for each of your loans. 

2) Determine where you want to apply your funds

Think about your priorities and use these funds with intention. 

I genuinely believe that if you don’t give purpose to your money, it is so easy for it to slip away. During these next four months, consider allowing your “student loan payment funds” towards these strategies: 

  1. Save the payment amounts in a savings account and make one lump sum payment come May 1st, 2022. The missed payments aren’t being forgiven (yet). Your loan total will remain the same, so keeping them in forbearance will extend the repayment period. If you can still afford to make payments now, your loan will be paid off sooner.
  2. Start or add to your emergency fund. The pandemic has shown us how important it is to have a healthy savings account. Want to learn more about how much you should have in your emergency fund check out this blog post
  3. Tackle high-interest rate debt, like credit cards or private student loans. 
  4. Increase how much you are putting towards your 401k or IRA. It’s never a bad idea to beef up your retirement.

3) Set Up Automatic Transfers

Don’t underestimate the importance of this step!


You have done the heavy lifting of understanding your payment amount and determining where to apply it. Now is the time to put it into action. I have seen thousands of dollars slip away this past year as the intentions were there; they just keep forgetting to make the transfer. Use technology to free up mental space and lean into automatic transfers.


We all want to make the most of the student loan payment pause. Following these three steps will help you towards your financial goals. 


Think about this time as an opportunity to patch the holes in your roof financially so that next time a financial storm comes, you are prepared. 


Ready. Set. Go.

Then reply to this email to let me know you did these steps!


Waiting with Gold Stars for you, 

Coach MicKallyn

Meet MicKallyn

mickallyn ellis in her office


Hi, I’m Mickallyn, a Mortgage Lender/Banker turned Financial Coach.  When student loans put me in debt, I knew I didn’t want to live the rest of my life paying them off, so I figured out how to pay them all off in just a year. Now I have zero debt, 3 homes, 4 college degrees and am raising two little boys. I’ve traveled to over 22 countries and live a debt free life. I’m committed to helping others do the same through 1 on 1 coaching and personalized plans that actually work.

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