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Student loan pause will expire come May

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Posted at 8:30 AM, Mar 16, 2022
and last updated 2022-03-16 10:30:55-04

NATIONAL  — After nearly two and a half years, student loan payments are scheduled to return in May, and in the midst of inflation, this can cause some borrowers to feel anxious. Borrowers in Colorado owe 28.2 billion in student loan debt.

A survey by the Student Debt Crisis Center found that 89 percent of borrowers are not prepared to start paying back their loans.

I spoke with debt paying expert, Mary Jo Lambert- Terry on what borrowers can do to make sure they can afford paying back their loans. She said the first thing to do is visit studentaid.gov and find out how much you owe. Over the past 2 years, your loan servicer might have changed. Check this and make sure you’re not signed up for auto payments.

“Our anxiety goes through the roof. Next to your rent and mortgage, it’s probably the biggest payment you have each month for most of us. So, what you’re going to want to do, is you’re going to want to look at the federal options,” said Lambert-Terry.

One federal option for borrowers is the “Income Driven Repayment Plan.” This will look at how much you make and will lower your monthly payments. For those who want a lower interest rate, you might want to consider refinancing your loans with a private lender.

Keep in mind, if you do this, you lose all the benefits of having a federal loan.