HUNTSVILLE, Ala. (WAFF) – Amid concerns over the COVID omicron variant, the Biden administration has extended the payment pause for federal student loan borrowers through May 1. Thus, for two years now, borrowers have had the option of suspending their monthly bills without accrued interest on their debt. Almost all borrowers accepted the relief, according to the research.
A recent survey of student borrowers found that nearly 90% are still not financially secure enough to start payments again. That’s according to a survey by the Student Debt Crisis Center (SDCC).
So, with payments resuming on May 1, 2022, we spoke to Kaeshier Fernandez, Financial Education Coordinator at Redstone Federal Credit Union.
He offered some tips on what you need to do as the time draws near to continue repayment.
Update your contact information with your federal loan service provider to ensure clear and ongoing communication.
- If you were on direct debit payment before March 13, 2020, your loan servicer will contact you before the end of the suspension to confirm whether or not you want to keep the direct debit. Failure to respond to these communications may automatically terminate your direct debit.
Research repayment plans and choose the one that best suits your situation.
- Consider applying (or reapplying, if you’ve had a change in income) for an income-contingent repayment (IDR) plan, which can make your payments more affordable based on income and family size. family.
Beware of student loan scams!
- Stay alert to aggressive advertisements to lure you into a scam.
- Never share your Federal Student Aid Identification (FSA ID) username or password or enter into any third party permissions or powers of attorney that will allow others to access your student accounts. student loan.
- Many scammers or student debt relief companies will charge an upfront fee to use their services. Find free US Department of Education loan officers at: StudentAid.gov
For more ways to save, be sure to tune in at noon every Friday for the “Financial Friday” segment of WAFF 48.
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