Student loan payments to resume in January 2022
RICHMOND, Va. (WWBT) - After nearly two years of pausing student loan bills, millions of Americas are about to owe those monthly payments again. Rachel DePompa is On Your Side with ways borrowers can prepare.
On Jan. 31, 2022, federal student loan payments will resume. The CARES Act of 2020 froze payments on these federal student loans and this forbearance was extended a handful of times.
Forty-three million Americans have student loan debt. That’s 1 in 8 Americans, according to an analysis of May 2021 census data.
Cherry Dale a Financial Coach with the Virginia Credit Union, says before the interest starts accruing again, log into your portal and see where you stand.
“You do want to analyze where you are with your student loans and make a plan. Figure out how much you owe each month and figure out what the interest is and when that payment comes due,” Dale said.
Set it up to where the payment comes out of your account automatically, that way you don’t have to think about it.
Double-check that your servicer has your current contact information so that you receive all the notices about any upcoming changes.
Dale says you can also consider enrolling in one of the government’s income-driven repayment plans when bills resume.
Copyright 2021 WWBT. All rights reserved.
Want NBC12’s top stories in your inbox each morning? Subscribe here.