MINOT, North Dakota – On August 6, the US Department of Education announced another extension of the suspension of student loan payments until January 31, 2022. After nearly two years in which borrowers have not had to pay off debts, this could be the last renewal. …
Student loans, although part of the educational process, can be time-consuming and costly as borrowers try to budget around these monthly payments.
“If you don’t live at home, you have to power the apartment, obviously food, and then how much you have to work to make up the difference, so that definitely affects payments, not much,” Stephanie Huther said. , student of Moscow State University.
But a nearly two-year freeze on student loan payments caused by the pandemic has brought many reliefs.
“It was a strange time, but really good news for the students. I mean, you can’t beat the fact that they are getting an interest-free loan at this stage, so it was very, very positive for the borrowers, ”said Lori Weber of Moscow State University’s Financial Aid Office.
Aid to nearly 100,000 North Dakotans who have student loans, bringing the total debt to approximately $ 3.2 billion.
On average, North Dakota residents have a balance of less than $ 30,000 and their monthly payment is about $ 212.
Student Loan Hero’s student loan consultant said now is the best time to start thinking about them again as this could be the last extension.
“Contact federal loan service personnel or go to free resources like the student loan hero to find out what’s best for you. You know, if you want to lower your monthly contributions, you can explore income-driven repayment plans that can cap your contributions as a percentage of your income, ”said Andrew Pentis of Student Loan Hero.
And start budgeting now.
“If borrowers can start returning this to the budget now, perhaps doing it a little more gradually, it will help them absorb it when it comes time to start in full,” Weber said.
Borrowers can look forward to their first payment in February.
Borrowers can defer or ask for a deferral once their loan becomes active again, however, interest will accrue.
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