CONNECTICUT, USA — More than three years after student loans were put on pause borrowers will soon have to start making payments again.
"It’s been more helpful honestly, it definitely has I’m definitely grateful, but I still know that I will have more to pay off," said Aliyah Christmas of Middleborough, MA.
In Connecticut, 13.8% of residents have student loan debt according to the Education Data Initiative.
"Student loan debt is such a big deal because of its size. It’s over a trillion dollars. It’s second only to housing debt it’s passed the car debt that Americans have, said Patrick Gourley, an economics professor at the University of New Haven.
September 1 marks the beginning of the road to repayment when interest will start to accrue again
"If you haven’t been making payments your balance should be the same now as it was in spring of 2020," Gourley said.
He said while payments don’t re-start until October, borrowers should be getting ready now. That means finding out your interest rate, how much you owe, and exploring your options.
"I know people don’t want to spend the time doing the math and going through the numbers this is definitely worth it," Gourley said.
One option is the new SAVE plan rolled out by the Biden Administration this month. The income-driven repayment has the potential to lower monthly payments and forgive remaining balances after a certain number of years.
"For borrowers that have especially a large debt, let’s say six figures, that’s probably going to be the most cost-effective option. If you have a smaller debt, only a couple thousand dollars or say 20-thousand dollars, then an income-based repayment plan might not be good for you," Gourley said.
Borrowers making payments for the first time in years say they’ve started to look at options and any assistance helps.
"I would love to not be paying them off for my whole life so whatever payment plan or option is quicker to you know just to get it done quicker," said Aliscia Jackson of Meriden.
Federal Student Aid said it will also have an on-ramp transitional period through September 30, 2024, where it will not report delinquency to credit agencies.
Gaby Molina is a reporter and anchor at FOX61 News. She can be reached at mmolina@fox61.com. Follow her on Facebook, X and Instagram.
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