Tucson, Arizona (KOLD News 13) – As the federal student loan repayment pause approaches Jan. 31, the University of Arizona’s Office of Scholarships and Financial Aid is advising borrowers to start planning ahead for payments.
Regardless of servants, payments will be due again to borrowers in February, Art Young, executive director of the UA Office of Scholarships and Financial Aid, said. He said people need to start communicating with servants now to make sure their information is up-to-date and that their payment plans are feasible.
“I think some people were kind of hoping that there would be group loan forgiveness and that all seemed like a possibility six to nine months ago. It looks like it won’t happen in the future,” Young said. “The good news is that there are some other options. In financial terms. With this pandemic, I would say it’s safe to say that government loan providers will be as resilient as they were before because they understand what’s going on.”
Young stressed the importance of repaying the loans on time. He said if you can’t afford the loan, you need to reach out to your provider to discuss options. If you don’t pay on your student loans, it can lead to default, causing bad credit and other serious consequences.
“If you are not able to pay, be upfront and honest with your loan service provider,” Young said. “Let them know your situation and then they can offer some options on how to proceed without harming your credit or future eligibility for Federal Student Aid.”
According to a recent study published by Student Loan Hero, Arizonans are among the most indebted federal and private borrowers in the United States, with an average debt of $34,712.
The average student debt in Arizona pays out about $265 a month, said Andrew Bentis, a student debt and education finance counselor. Bentis stressed the importance of budgeting to start making those payments again in February.
“You want to make sure you have room in your budget to meet those payments. You may need to cut back on expenses in certain places or increase your income in certain places. If you don’t feel like you can, you will want to reach out to your current servants,” Bentess said. You could consider an income-driven payment plan that would set your monthly dues at a percentage of your income, or pause your payments as the interest will not accrue.”
You will need to make sure that your account is up to date with your information. If you have any questions about the loan status or loan repayment plan, you can contact the Education Department. If you want to change your payment plan, because you can no longer afford this amount, experts suggest contacting the service to find out which options are better.
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