Federal student loan repayments resume
LANSING, Mich. (WILX) - For the first time in more than three years, federal student loan borrowers will be required to pay that money back plus interest.
Borrowers can expect to receive their first student loan bill at least 21 days before it’s due. The student loan repayment pause was extended eight times over the past three years. Many didn’t realize that the due date was inching closer. With inflation and interest rates on the rise, for many, this bill is the last thing on their minds.
“Don’t miss your rent payments so you can pay your student loans,” said Brice Carter, Chief Investment Officer at Financial Strategies Group.
More than 45 million people have student loan debt in America, totaling $1.6 trillion, according to the Biden Administration. Brice Carter said October is not the end all, be all for repayment.
“Starting now until the end of September next year, they are not going to default, they are not going to affect your credit score, they will accumulate interest, but if you miss payments for the next 12 months, you’re not going to get in financial trouble for that reason. So, you have an additional 12 months to start planning,” said Carter.
If you decide not to pay your loans off, it can come with serious consequences.
“They go into default, and it starts to impact your credit score, and because of the loan, service providers can start to go after you for those balances. So, thankfully, there are a lot of programs out there that can help with that,” Brice Carter warns.
It is encouraged to use the loan simulator to see how much you will owe per month, and for some, that number could be as low as zero dollars. For those who do owe money, there are multiple programs that can help when it comes to repaying your student loans.
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