How to handle private student loans during the pandemic

Options if you have private student loan debt

RICHMOND, Va. (WWBT) - All loans owned by the Department of Education have zero percent interest until Sept. 30 of this year.

So, what about everyone with private student loans? Some companies are offering assistance, but you have to reach out and ask about the options.

Cherry Dale, a financial coach with the Virginia Credit Union, says this also may be a good time for you to look into consolidating to a loan with the Department of Education since the interest is zero right now.

“Keep in mind, if they consolidate loans the interest that might have been accumulating is wrapped into that loan. So, that’s added to the principal so what they’re going to owe might be greater so they have to keep that into consideration,” said Dale.

You might be saving money during this zero percent interest time, but keep in mind that only lasts through Sept. 30. You’ll have to weigh the benefits here.

It’s really important if you have a student loan to go into your portal and see who owns that student loan and what the interest rate is so you can make good decisions.

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