Try This Money Move Before Student Loan Payments Resume: October’s Smartest Strategy

With federal student loan payments set to resume this fall, October presents a critical window for Millennials to take action. Whether you’re facing your first payment in years or adjusting to new financial realities, one strategy stands out: creating a dedicated student loan sinking fund. It’s simple, effective, and can ease the transition back into repayment.

What Is a Sinking Fund—and Why Now?

A sinking fund is a separate savings account earmarked for a specific future expense. In this case, it’s your student loan payment. By setting aside money in October—before payments officially resume—you’ll build a cushion that can absorb the shock of that first bill. Even saving one month’s payment in advance can reduce stress and give you breathing room.

Calculate Your Monthly Payment Early

Don’t wait for the bill to arrive. Log into your loan servicer’s website and review your updated payment amount. If you’re unsure who your servicer is, visit StudentAid.gov to find out. Many borrowers have seen changes due to account transfers or new income-driven repayment plans like SAVE. Knowing your exact monthly obligation allows you to set a realistic savings goal for your sinking fund.

Automate Your Savings—Even in Small Amounts

Once you know your target, automate transfers to a separate savings account. If your payment is $250, try setting aside $62.50 per week throughout October. Even partial savings will help. Use budgeting apps like Chime, Ally, or Capital One 360 that allow you to create labeled savings buckets and automate contributions.

Review Your Budget for Hidden Opportunities

October is a great time to audit your spending. Cancel unused subscriptions, reduce discretionary purchases, and redirect those funds to your sinking fund. If you’re receiving a fall bonus or tax refund, consider allocating a portion toward your student loan buffer. Every dollar saved now is one less dollar scrambling later.

Final Thought: Prepare, Don’t Panic

Student loan repayment doesn’t have to derail your financial wellness. By starting a sinking fund in October, you’re not just saving money—you’re buying peace of mind. This proactive step helps you stay ahead, avoid missed payments, and maintain control over your budget. The smartest money move this month isn’t flashy—it’s strategic. And it starts today