Debt expert offers tips after student loan payment pause extended

According to Mary Jo Lambert-Terry, Managing Partner at Yrefy in Arizona, there are several reasons for the extension.

ARIZONA, USA – The student loan payment hiatus has been extended again.

For months, borrowers have been planning to pay this dreaded bill again starting February 1, but the Biden government has postponed the moratorium until May 1, 2022.

According to Mary Jo Lambert-Terry, Managing Partner at Yrefy in Arizona, there are several reasons for the extension.

“Part of that is the pandemic, but also the change of servants,” said Terry. “So during the pandemic we left federal credit service providers out and then new ones came in so they’d like to make sure everyone’s account was working properly.”

RELATED: Yes, Biden previously committed to cancel $ 10,000 federal debt on student loans

Terry said May was only a few months away, so now is the time to prepare.

“Two years is a considerable time, as it has been since many student loans paid out. It will affect your budget and budgeting for this bill will become difficult again.”

Terry said just start by updating your contact information.

“So go to studentaid.gov, update your profile because a lot of people have changed addresses, phone numbers and emails,” she said. “Also see who your loan service provider is, as your loan service provider may have changed. Knowing who to pay to is obviously pretty important. “

She said if you can, pay off your main balance by May, even though there has been an extension.

RELATED: How to Live Your Best Life and Manage Your Money Effectively | New U November

“So there was no interest on your loan during the pandemic which is great news and also gives a break to people who have been unemployed or life has passed,” she continued. “You can make payments now, if you want, by the May 2022 deadline, and there is no interest, so any payment you make is deducted from the main balance, which is great.”

She said skipping the coffee or eating out and setting aside only $ 25 each month through May can make a world of difference.

“The most important thing is that you can put $ 25 on your student loans. Send that little bit of extra cash so your loans get paid off much faster.”

12 messages on YouTube

https://www.youtube.com/watch?v=videoseries

Keep up to date with the latest news and stories on YouTube channel 12 News. Subscribe today.

Leave a Comment

Your email address will not be published.