OMAHA, Neb. (KMTV) — The U.S. Department of Education has resumed collections on defaulted student loan payments. We're figuring out what this means for borrowers and how you can take care of your financial well being.
- We spoke to financial expert Andy Manthei with GreenPath Financial Wellbeing.
- Right now, there are millions of people behind on their student loans, with only 38% up-to-date on payments.
- For specific questions or more information on repayments, contact your loan provider or go to studentaid.gov.
BROADCAST TRANSCRIPT:
On Monday, the U.S. Department of Education resumed collections on defaulted student loan payments. We're figuring out what this means for borrowers and how you can take care of your financial well being.
Right now, there are millions of people behind on their student loans, with only 38% up-to-date on payments.
For borrowers who haven't had to make a payment since the start of the pandemic, this change can seem overwhelming.
Over the past two weeks, 3 News Now's Jill Lamkins has been talking to borrowers past and present about what this means for them.
Some have told Lamkins, "If you take out a loan, you should pay it," while others say it's been a more confusing process than they thought it would be.
Andy Manthei with GreenPath Financial Wellbeing tells us the first thing you should do is take a deep breath, make sure all the information you're getting about your loans is accurate, and stay in tune with the changes being made.
"Right now, changes are happening so frequently and so often that today's information might be gone tomorrow, and so we can't necessarily get centered on that one thing until we know that everything is kind of centered itself and what's actually gonna happen," said Andy Manthei.
Manthei says it's a good idea to set a weekly reminder to check on your student loan account to stay up-to-date with the most recent information.
"It's really getting a strong handle on specifically what that payment could look like, what the payment options could look like, and then really digging into what choices are we willing to make right now that can just make sure that this gets us through," said Manthei.
With the SAVE plan going away, Manthei says based on his knowledge there will still be income-driven repayment plans for those who need it.
If you need help figuring out how you'll repay your loans, Manthei recommends you reach out to a credit adviser. For specific questions or more information on repayments, contact your loan provider or go to studentaid.gov.
