Advice to help plan ahead for upcoming student loan payments

55% of student loan borrowers don’t feel ready to resume payments
Payments on federal student loans are set to resume for the first time in three years. Rachel DePompa talks with The College Investor on what to expect.
Published: Sep. 25, 2023 at 11:15 AM AKDT
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(InvestigateTV) — For the first time in more than three years, federal student loan borrowers will have to begin making their monthly payments.

Around 20% of those borrowers will be making a payment for the first time since they graduated during the pandemic payment pauses.

Robert Farrington from The College Investor said many people likely aren’t ready to add this expense back into their budgets.

“I think it’s just a big shock. Our whole world has changed. Our lives have changed, people have changed employment situations,” Farrington said. “And so, all those combined are adding a lot of anxiety when it comes to their student loans.”

A recent College Investor survey of 1,200 people found 82% are worried and stressed out about their upcoming student loan payment.

“Our number one tip is to honestly spend the next week or two getting organized with your student loans. Figure out what you owe and figure out what that monthly payment is going to be,’” Farrington said. And if you don’t know what those things are going to be. You want to go to studentaid.gov and you want to find your loans and see what your student loan repayment options are.”

Farrington said check and see if one of the new income-driven repayment plans, like the one called SAVE, could significantly lower your student loan payment.

If you have student loans that are about to resume, he said set aside the time to look up your loans at studentaid.gov. Do a little research on the new programs available.