Student loan repayment deadline approaching; what borrowers need to know

Tamara Scott Image
Thursday, August 11, 2022
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With less than three weeks to go until the federal student loan repayments pause expires, millions of borrowers are still awaiting a decision from President Biden.

RALEIGH, N.C. (WTVD) -- With less than three weeks to go until the federal student loan repayments pause expires, millions of borrowers are still awaiting a decision from President Biden.

According to the Federal Student Aid and Education Data Initiative, NC residents hold $49.2 billion in student loan debt.

And $37,721 is the average student loan debt.

The moratorium set in place by the Trump administration and extended with the Biden Administration to pause payments is set to expire on August 31.

Wes White is a personal financer in Raleigh and he says student loan debt can be crippling, but now is the time to help yourself.

First he says if you can still try to make payments during this time of no interest rates.

Look into and talk with your current loan provider there may be programs or services you're missing out on to help you.

And also be mindful of any new loans you take on during this period.

He is hopeful it is extended but believes this is the best way to help yourself.

"We're in this kind of rising interest rate environment. So those that are undergrads that have, you know, current loans that may be seeking graduate school assistance in the in the future, we have this time period now, where if you are able to continue to make payments at 0%, then hey, you can really, you know, knock out that principle. So if you're able to, you know, with your current cash flow, definitely do that," said White.