SYRACUSE, N.Y. (WSYR-TV)– Financial aid experts from Le Moyne College weigh in on what people should do during this federal student loan pause if they have loans to pay back.
The Director for Financial Aid, Maximo Flint-Morgan, said it’s really based on the individual’s situation. “It’s going to be a great help to families and to any student loan borrower, with the pause on payments and they also extended the interest rate on loans that will still be 0% all the way through January.”
He says there are instances where people are struggling with food and rent so they can’t pay, so the decision to not pay won’t affect them. He says if you can afford it, do it.
“If you owed $1,000 and you made a $100 payments over four months that’s $400 off of your principle and when the interest rate in February increases to 3% or 4% or whatever it is for each borrower, you’ll have $400 less principle that interest will accrue on so it can help you speed up your repayment a great deal,” said Morgan.
In October, the Education Department is supposed to start discussions on loan programs and possible forgiveness.
“If you were hoping for forgiveness there’s conversations where $10,000 forgiven, $30,000 forgiven, $50,000 forgiven, I don’t know what will happen your guess is as good as mine as far as forgiveness, but I think what we do know would help you make choices for today and next month,” Morgan said.