WAUSAU, Wisconsin (WSAW) – Federal student loan payments will resume on February 1, 2022, with financial advisor Wauzau advising people to take the break if needed.
President Joe Biden extended the pause on federal student loan payments on Aug. 6. The hiatus is expected to end on January 31st.
it includes suspension of payments on loans, zero interest rate and a stop of collection on overdue loans, according to the US Department of Education.
Private Wealth Advisor Financial group HermeningKevin Hermening invites people to enjoy a break if they have no other choice.
“They may have other debts that they could consider, but because they will not increase during this period of time,” Hermening explained. “It’s okay to just wait until that date.”
He suggests doing this if people are not financially strained during the pandemic and can afford to keep paying off their student loans.
“The idea of getting out of debt is always a good idea,” Hermening said.
As the new year approaches, Hermening advises people to make a plan for when payments will resume.
“When it comes to paying off student loan debt, it’s the same with credit cards,” he explained. “You must pay all interest for this month. In addition, you should also try to pay off a portion of the share capital every month. “
It also invites people to save money by paying off their debts, no matter how large or small.
“I also recommend that people make some long-term savings at the same time, because you can never get the time back,” Hermening explained. “We think you can’t wait to pay off the debt and then start saving.”
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