TULSA, Okla. — Student loan repayments start back in less than a week.
If you have a loan but haven’t picked a plan yet, experts suggest you do that sooner rather than later.
The first piece of advice from an expert is not to avoid payments resuming and do nothing.
However, as one borrower explained, having to think about this payment again will be tough.
“When you don’t have the debt in your mind, you have peace,” Johana Lopez said.
For a few years, people like Lopez didn’t have to pay their student loan debt.
That’s because there was a pause on interest and loans during the pandemic.
On Oct. 1, those payments resume.
“I see student loans as a very long-term debt,” Lopez said.
She got a bachelor’s and master’s degree from the University of Phoenix, which used to have a campus in Tulsa.
Between the two, she owes about $100,000.
“When I took the loans, I thought they get paid later in life. You know, once I get a degree, I can start making big payments,” she explained.
When you add a house, car, and kids, she said that thought becomes impossible.
So, not having to pay these past few years was a relief.
However, now Lopez is having to think about that burden once again.
“When you don’t see a light at the end of the tunnel where you can actually get some relief, you kind of just sit on it,” she said.
Instead of sitting on it, 2 News went to an expert.
Inside the Root, a co-working space sits Her Planning. Owner and Financial Planner Kristin Afelumo has been meeting with clients to discuss their student loans, and she has some advice for others.
“If you go to studentaid.gov, you can make sure you know who your loan servicer is," she said. "You also can look at a simulator that can help you figure out which loan repayment plan is the best option for you.”
Once you’ve determined your servicer, used the simulator, and chosen a plan, "get your auto payment set up so the bills start coming out of your account every month.”
She understands this can be hard because everyone has adjusted to the budget they had without these payments, and maybe you’ve made a big purchase in that time, like a car.
Ultimately, Afelumo suggests you carve out money where you can, but whatever you do, don’t cut back on saving.
“If you’re doing a few percentage points to your 401K or your work-sponsored plan, try to keep that going and figure out another path forward or split the difference if you have to," she said.
Afelumo did explain there is a bright spot to look forward to in all this, the SECURE 2.0 Act. It will allow employers to make matching contributions to student loan payments much like they do with 401K’s. That goes into effect next year.
If you truly cannot make the payments right now based on your income or because you lost your job, talk to your loan servicer. They may be able to work with you.
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