Student Loans Set To Restart

(KNSI) –

Student loan payments are getting set to restart soon.

Federal payments were paused with interest rates set at zero at the start of the coronavirus pandemic. The Biden Administration rolled out one more “final extension” in August with the pause ending on January 31st of 2022. Borrowers can expect to see a billing statement at least 21 days before the first payment is due on February 1st.

Mike Uran, Director of Financial Aid at St. Cloud State University, tells borrowers to stay in contact with their loan servicer.

Photo by Mackenzie Marco. Courtesy of Unsplash.com

“For anyone who’s in repayment on a student loan, it’s really important to stay in contact with your servicer. There are a number of different opportunities that the servicer has to be able to work with students, things like deferments and forbearances; Different types of repayment plans. There’s a number of different tools that are available to the servicer to assist that borrower who’s maybe having difficulty making payments.”

In the fall of this year, more than 42-million-people had federal student loans of some sort which equals almost one-point-six-trillion-dollars. Uran estimates 67% of SCSU students use some form of federal loan to finance their education.

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