Tens of millions of Americans are gearing up to make student loan payments once again for the first time in years.
As pandemic-era relief finally comes to an end, official payment due dates will arrive in just days starting in October.
“Yeah, I do feel like part of our budget is now going to have to go to taking care of those loans,” said
Here in Arizona, there are close to 900,000 people, including Taylor Anderson, who will have to start paying again.
Anderson told ABC15 that he thinks he owes around $50,000.
He said he has private and federal student loans from his time at both ASU and Grand Canyon University, where he finished his music degree.
“I have the email on read in my email because I'm going to get to it at some point,” said Anderson.
When we talked to Anderson and his wife on Tuesday, they had not decided on a payment plan yet, but interest started accruing at the beginning of the month and payments resume in October.
He told ABC15 he would be logging on Tuesday night to figure out a plan.
Financial Advisor Scott Rulon told ABC15 he has been sharing advice with clients and his son, who recently graduated from GCU.
His biggest reminder to everyone.
“Just don't panic…” said Rulon.
The first step is to go online to the Federal Student Aid website and figure out your loan provider.
There are also various repayment plans to look through and choose from.
“There are some types of repayment plans based on your economics, and so I would definitely look at those,” said Rulon.
For borrowers still dealing with inflation and now trying to find ways to tighten the budget even more, Rulon suggests going through the month and noticing spending patterns.
“Sometimes we have to go back to the basics, and put cash in an envelope to pay our expenses,” said Rulon. “Because there is a certain finality when you pay things with cash.”
He even helps people find alternate ways to pay for their loans, or even find a secondary source of income.
“In my family, we start teaching some out-of-the-box methods,” said Rulon. “One of those might even be start your own internet business.”
There is an on-ramp period until September 2024 that will protect borrowers from having a delinquency reported to credit reporting agencies. But for borrowers still trying to make a plan, payments are still due and interest will add up.
