President Biden made the announcement on Monday; After many extensions to the COVID-era pause on student loan payments, bills will be due again starting February 1, 2022. But surveys show thousands of people aren’t ready to start paying again.
Certified Financial Planner Matt Goren says budgeting is really important.
“Next up is figuring out what do I need to pull back on, where can I make adjustments in my budget to make those payments again," Goren says. "This means being proactive, cutting back on fixed expenses where possible.”
Loan interest — which was paused at 0% — will start accruing again, even for students still in school. Borrowers should reach out to financial advisors or clinics on campus for help, Goren says.
Lastly, it’s important to stay informed. That means checking in with loan servicers, which might have changed during the moratorium.