How do I repay my student loans?
NORTH TEXAS (CBSNewsTexas.com) – It's October – which means student loan payments are resuming for nearly 44 million borrowers.
The pause, known as forbearance, began in March 2020 as an emergency response to the COVID-19 pandemic. Along with the pause, interest was not accrued.
After those three years, many are scrambling to make their payments, or even find out who their new servicer is. Scammers are also taking this opportunity to target those who are stressed and confused.
Karen Krause, executive director of financial aid at the University of Texas at Arlington, says there are several things to keep in mind when you are approached by a scammer.
She recommends getting in touch with your loan servicer directly to ensure you're sending your payment to the right place. She also says talking to your loan servicer about financial hardships could help make the process easier.
Am I eligible for loan forgiveness programs?
President Biden has promised borrowers that he would forgive all – if not some – student loan debt.
After the Supreme Court blocked Mr. Biden's plan that promised up to $20,000 of loan forgiveness for borrowers, he introduced the SAVE plan.
The SAVE plan is an income-driven repayment program that adjusts a borrower's monthly payment to their income. Some borrowers could pay as little as $0.
"The trade off is, it extends the life of the loan, so in theory, you could be paying more over the life of the loan," Krause said.
Krause says it isn't smart to just ignore the loan completely, as it only hurts you.
"You signed all the promissory notes, maybe you didn't understand the loans ... to not pay and to not do anything is really foolish," she said.
Krause has more tips for student loan borrowers in the player above.
