Millions of Americans are getting ready for the federal student loan repayment program to resume this autumn following a nearly three-year break due to COVID-19. However, this added cost is making borrowers anxious about their financial situation when payments are again due.
According to News Now Omaha, Morgan Covert, a physical education instructor, is one of them. She disclosed to Scripps News that she owes approximately $100,000 in federal student loan repayments.
That’s how Covert felt, adding, “I’ll be dead before I finish it, and I’ll die with student loan debt.”
When federal student loan repayments resume this fall, Covert anticipates paying more than $600 a month.
According to the Department of Education, 43 million Americans owe a total of $1.6 trillion in federal student loan debt. Borrowers have about $37,000 in debt on average.
Many people are concerned about their financial situation when student loan payments are due because they haven’t made a monthly payment since March 2020, when President Trump suspended payments.
People who have federal student loan debt should anticipate interest to start accruing again on September 1 and payments to restart in October, a Department of Education official told ABC News.
As a result, although interest will start to accrue on September 1, payments won’t be due right away but rather gradually over the ensuing weeks. Depending on how each loan servicer handles the restart, borrowers may have different payment due dates.
A representative for the Department of Education said authorities are dedicated to making sure students are fully aware of their payment deadlines and that more specific timing instructions would be released in the coming months.
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