COVID-19 student loan relief to end, what financial advisors are saying – WJRT

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COVID-19 student loan relief to end, what financial advisors are saying
Federal student loan payments are restarting soon this after they’ve been on a pause for nearly two years.
As the deadline to start making those payments quickly approaches for borrowers, Mid-Michigan University financial aid officers say communication is key.
“The best thing to do is call your servicer and if you can’t remember who your servicer is, then call the Federal Student Information Center,” said Robert Lemuel.
Director of Scholarships and Financial Aid at Saginaw Valley State University (SVSU) Robert Lemuel says, now is the best time to start contacting your student loan servicer to make arrangements as the Federal Student Loan payments COVID-19 emergency relief ends January 31st 2022.
“I would suggest for students who may have issues, for students who can’t pay at all. Definitely contact a servicer to see if somehow they can pause the payment in some way by getting some type of deferment. So there are some options out there for individuals,” said Lemeul.
Throughout the pandemic the U.S Department of Education suspended the student loan payment with a 0% interest rate.
With a little over a month left before those payments start up again Sara Cyrus a Financial Aid Officer with University of Michigan-Flint says, your repayment plan should pick up where it left off, that the interest rate and payment plan should stay the same.
However, if an individual decides not to make contact or repaying their loan they may face problems in the future.
“The borrower would become the delinquent and eventually default. I believe that’s around a nine month process for that to happen. That’s, of course terrible for credit. And it does prevent them from borrowing any federal student aid in the future if they did want to go back to school or anything like that,” said Cyrus.
Student Loan Payments will restart after January 31st 2022 to find more details or how you can prepare for the repayments contact the Federal Student Information Center, HERE.

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