DES MOINES, Iowa — Students with federal loans haven’t been required to make a payment in more than two years. That ends September first.
“That’s why they need to contact their student loan servicer right now they can find out what is the payment amount to prepare for even if there is a pause people should try to save some money in the amount of the payments they’ll have to make to get used to once again living on less so they can make that student loan payment,” said Steve McCullough, the president and CEO of Iowa Student Loan Liquidity Corporation.
Federal student loan payments had been put on pause twice by former President Donald Trump and four times by current President Joe Biden. McCullough says for some people it could be the last two weeks to make a payment with zero interest. For others they have a short time to cut down on extra expenses they’ve been enjoying with loan payments on pause. He says loan servicers have options to help with repayment if anyone does not have the money to make their full loan payment in September.
While the federal reserve has reported interest rates are on the rise McCullough says your student loan interest rate should not be a surprise. “That is something I have assurance on. People’s rates will be the same as before the pause. For the last several years they have been fixed rates so it will be the same as before the pause but it is an absolute great thing to make payments when none of the payment will go towards interest because it knocks down your loan payment so much faster,” said McCullough.
For anyone looking for help on a repayment plan or assistance with who your loan servicer may be just head to the Federal Student Aid ‘Who’s my lender’ page.