Final student loan payment freeze? - KFYR-TV

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MINOT, N.D. - On Aug. 6, the U.S. Department of Education announced another extension of the student loan payments pause until Jan. 31, 2022. After close to two years of borrowers not having to pay back debt, this may be the last extension.

Student loans, while a part of the educational experience, can take up a lot of time and money, as borrowers try to budget around those monthly payments.

“If you’re not living at home, you have to put in effect apartment, obviously food and then how much you need to be working to make up the difference so it definitely puts a toll on payments and what not,” said Stephanie Huether, a MSU student.

But the close to two year student loan payment freeze brought on by the pandemic has offered much relief.

“It’s been sort of a strange time, but really good news for students. I mean you can’t beat the fact that they are getting an interest free loan through this stretch so that’s been very, very postive for borrowers,” said Laurie Weber with MSU Financial Aid Office.

Relief for the close to 100,000 North Dakotans who have student loans, creating a total roughly $3.2 billion of debt.

On average, North Dakotans have a balance of less than $30,000, making their monthly payment around $212.

A student loan counselor with Student Loan Hero said now is the best time to start thinking about them again as this may be the last extension.

“Contact you federal loan servicer or reach out to free resources like student loan hero and figure out what’s best for you.  You know, if you want to lower you monthly dues, you might look into income driven repayment plans that can cap your dues at a percentage of your income,” said Andrew Pentis with Student Loan Hero.

And start budgeting now.

“If borrowers are able to start working that back into the budget now, maybe doing that on a little more of a gradual basis will help them absorb it when it comes to time to begin in full,” said Weber.

Borrowers can expect their first payment in February.

Borrowers can still postpone or ask for forbearance once their loan is active again, however interest will accrue.

Copyright 2021 KFYR. All rights reserved.

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