SOUTHERN COLORADO — After nearly two and a half years, the student loan pause is set to expire on Sept. 1. According to Student Loan Hero, Colorado borrowers owe over $29 billion, and over 800,000 Coloradans have student loans.
Although there is talk about the federal government extending the student loan pause again, Biden has just a few weeks to make that decision. Still, experts say it’s best to start making payments now.
“Even if they extend the nonpayment timing, if you can pay $25 on your loan, pay something. Skip your favorite food place, your favorite coffee place. Because that money comes directly off the principal balance of your loan which could have a long-term impact of you paying less interest in a shorter low term,” said Mary Jo Lambert-Terry, Managing Partner at Yrefy and student loan repayment expert.
Lambert-Terry suggests borrowers visit studentaid.gov and explore their repayment plans. She says an income-driven repayment plan can help out those who are struggling to pay their bills. If you want a lower interest rate, you might want to consider refinancing your loans with a private lender.
Keep in mind, that if you do this, you lose all the benefits of having a federal loan.
Watch KOAA News5 on your time, anytime with our free streaming app available for your Roku, FireTV, AppleTV and Android TV. Just search KOAA News5, download and start watching.