With a staggering $1.7 trillion in loan debt impacting 43.5 million Americans, borrowers are urged to prepare for this transition.
Federal student loan payments are set to recommence, marking a significant milestone since the pandemic-induced pause
Jazmyne Harris, a student loan borrower, expressed her apprehension, echoing sentiments felt by many. “I’m not excited. I do not suppose anyone is agitated,” Harris remarked, emphasizing how student loan payments have not been a precedence for her during the past three times.
Financial advisor Brent Wells of Young Wealth Management foresees an economic impact but cautions that the extent remains uncertain. One key change introduced is the Saving on Valuable Education (SAVE) plan, designed to offer borrowers the lowest possible monthly student loan payments.
Wells advises borrowers to identify their new loan servicer and understand the payment amounts
Creating a budget is strongly recommended. “In our opinion, everybody should [use a budget],” Wells stressed, emphasizing that a well-structured budget ensures timely student loan payments and guards against penalties and potential negative impacts on credit.
Harris, like many others, intends to follow this counsel to manage the impending resumption of student loan payments effectively.
READ ALSO: Parents Empower Students To Avoid College Debt Through Strategic Planning