For more than three years, the Department of Education hasn't been charging interest or requiring monthly payments from Americans with student debt. Both those pauses are ending and for some borrowers, that means trying to squeeze another monthly payment out of an already tight budget.
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00:00 For more than three years,
00:01 the Department of Education hasn't
00:03 been charging interest or requiring
00:04 monthly payments for Americans
00:06 with student loan debts.
00:07 Both of those pauses are coming to an end,
00:10 and for some borrowers that means
00:12 squeezing another monthly payment
00:13 out of an already tight budget.
00:16 At least sleep over it.
00:17 I'm incredibly stressed about
00:21 the payment. Wisconsin native
00:22 James Wright spent 11 years in college,
00:25 earning a bachelor's degree and then
00:26 a master's degree in architecture.
00:28 He's been paying down his private
00:30 student loans all throughout the pandemic,
00:32 but now with federal payments due soon,
00:34 he's not sure how he and wife
00:36 Caitlin are going to afford it.
00:38 Struggling to figure out how we're
00:40 going to be able to come up with another.
00:43 300 and at least $350 a month,
00:45 potentially more for borrowers like right.
00:47 Financial experts say the first
00:48 thing you should do is log into
00:51 your account, check your repayment
00:52 program and make sure your
00:54 information is up to date.
00:55 That monthly payment might not
00:57 reflect what you're actually making
00:59 today and so between changing to
01:01 an income driven repayment plan.
01:02 And making sure that your income
01:04 is certified and up to date,
01:06 those two things should lower your
01:08 payments to make them more affordable.
01:09 Farrington says Americans shouldn't
01:11 ignore their student debt because not
01:13 paying means their account can go
01:15 into delinquency or default.
01:16 The Biden administration is trying
01:19 to give Americans more options.
01:21 The new save repayment plan is
01:23 designed to help lower monthly
01:24 payments and minimize the impact
01:26 of interest for borrowers who qualify.
01:28 And the White House is offering a
01:30 grace period for Americans who just
01:32 can't afford to start making payments.
01:34 If you're looking at this first payment,
01:35 you're like, I don't know what to do.
01:37 You do have 12 months before they
01:39 will report you to the credit
01:40 bureaus and try to come after your
01:42 wages and take your tax refund.
01:44 Wright says he doesn't qualify for the
01:46 save plan, but he may take advantage
01:48 of the option to delay starting
01:50 those monthly payments.
01:51 But even with all the stress,
01:53 his student loans are causing him now.
01:54 Wright says his degree was worth it.
01:56 I love what I do. I love my job.
02:00 I am having an impact on my community.
02:06 My specialties in K12 education, so they.
02:10 Work out, I literally work on
02:12 designing schools for kids while
02:14 student loan interest resumed
02:15 September 1st. Borrowers still
02:16 have a few weeks before the first
02:18 payments are due on October 1st.
02:20 Stephanie Liebergen,
02:21 Scripps News, Washington.