Student-loan restart could put a squeeze on borrowers
36% of federal student loan borrowers do not think they can make their payments
(InvestigateTV) — Nearly half of student loan borrowers don’t know how much money they owe, according to a recent NerdWallet survey.
Kim Palmer, a personal finance expert with NerdWallet, said there’s a lot of confusion after three and a half years of no payments.
“All of a sudden, they are starting and for a lot of people that means confusion and stress because they suddenly have to come up with that money,” Palmer explained. “And that money’s been going to other essential things, in some cases food and rent. So, it is a really challenging time for a lot of people.”
There are some options for people that really need help. For example, there’s a 12-month “on ramp” program, but it’s important to note interest still accrues during that time.
The Biden Admiration has also rolled out several income driven repayment plans.
“They get a little complicated but basically if you go to studentaid.gov you can figure out what you might be eligible for and what makes the most sense for you,” Palmer said.
NerdWallet shared tips for people feeling overwhelmed:
- Go to studentaid.gov and look up the different plans available to see if there is a fit
- Research how much you owe and to whom
- Create a monthly budget that will allow room for the new payments
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