JACKSONVILLE, Fla. – Beginning in October, federal student loan borrowers will need to start making payments for their loans after a more than 3-year long pause due to the pandemic.
The initial pause was initiated by former Pres. Donald Trump in March 2020 when COVID-19 started spreading rapidly. The pause also included interest that accrued on student loans.
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In September, that interest began accumulating again after legislation required the government to end the moratorium.
Michael Gantt works in the debt industry and doesn’t think that people are financially prepared to resume making payments.
“When people have to decide whether they’re going to pay their student loan payments or, their cards or their credit cards or rent it’s going to become a dilemma,” Grant said.
News4JAX Insiders also weighed in on the topic with one Insider saying, “I’ve got an idea….you took out a loan with a promise to repay it. So, repay the loan! We, the people are tired of paying your bills.”
Another Insider said, “I thought Biden was gonna cancel these debts.”
The Biden Administration tried to forgive student loans for many borrowers but the Supreme Court ruled the administration overstepped its boundaries.
Ximena Gonzalez is a recent graduate with a master’s in special education. She said she owes more than $50,000 in loans.
She said she is worried about payments returning.
“I’m still trying to figure out to get a job and just moved to Jacksonville so it’s like kind of like against time because I need to get a job before that starts,” Gonzalez said.
There are options for people like Gonzalez who may be worried about making payments.
According to StudentAid.gov, there are income-driven repayment(IDR) plans, designed to make your student loan debt more manageable by giving borrowers a monthly payment based on their income and family size.
These are the four IDR plans:
- Saving on a Valuable Education (SAVE) Plan—formerly the REPAYE Plan
- Pay As You Earn (PAYE) Repayment Plan
- Income-Based Repayment (IBR) Plan
- Income-Contingent Repayment (ICR) Plan
With certain plans, your payment could be as low as $0 a month, and after 20 or 25 years, depending on the plan, your remaining loan balance will be forgiven or possibly as soon as 10 years under Public Service Loan Forgiveness.
To apply for an Income-Driven Repayment Plan, visit studentaig.gov.