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Student loan repayments resume
The federal government says Americans collectively hold more than $1.6 trillion in student loan debt. At the University of Central Florida, students like first-year student Brin Flores say they know that weight.
ORLANDO, Fla. - The federal government says Americans collectively hold more than $1.6 trillion in student loan debt.
At the University of Central Florida, students like first-year student Brin Flores say they know that weight.
"I have the Florida Bright Futures that they offer and Florida Student Federal Aid," he said, "but I have some student loans as well in there to pay off the tuition and housing fees."
Flores said he would pay it off, bit by bit.
"When I get a job, in the future, I'm gonna set aside a certain amount every paycheck just to make sure I can pay that back in a timely manner."
Flores will have to. After a three-year pause because of the COVID-19 pandemic, interest on student loans resumed on September 1, and the actual payments start coming due, this month.
"Somebody's got to pay back that debt, unfortunately," said UCF first-year student Andrew Letterman. "I think we should be compassionate towards them, but it's probably about time, yeah."
For those who are having trouble, the government is making some exceptions for late payments. The next 12-months are considered the "student loan on-ramp." During that time, missed payments and balances won't be reflected on a borrower's credit report.
"I think it's good to be on top of your stuff. It is your responsibility," said UCF first-year student Thomas Harrington, "you did take out the student loans, so you should pay it back in a timely manner, but some people have problems, they can't, you know?"
Borrowers will have to check with their loan servicer for their exact payment due dates and the amount of their repayments. Borrowers can log into the government website StudentAid.gov to find their loan information and get up-to-date with payments.
Andy Tate, a certified financial planner, said it paid to have as much data on the loans as possible.
"The more organized you are… the better protected you'll be. Look at old receipts of old payments. Identify your lenders, and who they are. A lot of the service providers have changed, and so you need to make sure you make the phone call. Who is now in charge of my loan? What type of loan do I have? Really look into gathering some data on that loan."
One thing that experts said borrowers shouldn't do is ignore their student loan repayments. The Federal Government has the ability to take that money from the paychecks or tax returns of borrowers who didn’t pay up.