Financial consultant advises as repayments set to begin for federal student loans

(WTNH) – It’s been nearly two years since the government suspended student loan payments to ease the financial burden amid the pandemic, but that suspension of payments will soon end.

As you make those resolutions, cash could top the list for 2022, and for anyone with federal student loans, you’ll soon have to start paying them again.

They are due to resume on May 1, although financial consultant John Caserta suggests you start earlier so it’s not a financial shock.

“A few months before that, or as long as you can, start making those payments to yourself. Put them in a savings account, maybe a retirement plan or an investment account, so you get used to living without that money,” Caserta said.

The pause was for federal, not private, student loans, and the change in interest rates shouldn’t affect what you pay. However, if you’re still struggling financially and paying won’t be easy, Caserta says you have options.

“If you can’t make those payments, consider changing repayment plans. There are plenty of choices that can really cap those payouts. Maybe even consider consolidating,” Caserta said.

Look into income-based repayment options, pay as you earn, and the like for something that works for you. You should research now what your bill will look like before the first one arrives.

Caserta suggests you check studentaid.gov to remember who your agent is, what the interest rate is, and what your next payment will look like.