Michigan college graduates react to student loan pause until May

Michigan college graduates react to student loan pause until May
Published: Dec. 23, 2021 at 5:23 PM EST
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LANSING, Mich. (WILX) - The Biden Administration announced Wednesday that people with federal student loans have a few extra months without payments.

Read: Biden administration extends pause on student loan payments through May 1

The restart of payments have moved from February 1 to May 1 of 2022. This second push back on the restart date had at least one Michigan State University graduate jumping for joy.

“I literally just jumped up and down screaming clapping my hands like I am ten again, I’m so excited,” said MSU grad, Michelle Schimpke.

While loans are on hold, they are at a 0% interest rate. And that’s exactly why Michelle said she plans to keep paying her loans.

“I’m just going to keep doing what I’m doing, which is saving and paying big chunks before the interest starts. I’ve been working 60 hours a week, extra jobs. Everyone that I know also has to have more than one job and is scrambling to live and pay all of their strident debt too,” said Schimpke.

While some are continuing to pay their loans because of the zero percent interest rate, others tell News 10 they just cant afford the high price tag.

“When they first sent the bill this is how much you have to pay a month I was like holy cow there’s no way,” said Central graduate, Courtney Guthrie.

Guthrie said her and her partner are now more prepared to pay their loans as the pause gave them a chance to save up after graduating.

“The pushing back has been very helpful in helping us open a business because we were able to take the money for the loans and put it into our business,” said Guthrie.

Related: Watching Your Wallet: Tips to pay off student loans

Experts said the best thing you can do is -- if you can afford it -- continue to pay the loans.

“Every payment you make every dollar of that payment will go directly to principle and so you will see that you’re making more progress on lowering the debt amount that you have,” said Chief Marketing Officer at MSU Federal Credit Union, Deidre Davis.

If you do have federal student loans make sure your payment information is correct. This will help you avoid extra charges when payments restart.

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