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How to prepare for student loan payments after nearly two and half years since initial pause

student loans
Posted at 6:46 AM, Aug 16, 2022
and last updated 2022-08-16 08:46:14-04

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.
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