Helping Hoosiers manage student loan repayments
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After a lengthy pandemic-induced pause, Hoosiers will soon be required to start repaying their student loans. Interest starts accruing again on September 1 and then in October payments resume for borrowers across Indiana for the first time in more than three years.
This repayment restart is certain to be a shock for many and questions abound. Fortunately Hoosiers have an expert resource in INvestEd to turn to for answers.
We know more than 900,000 Hoosiers carry some form of student loan debt, and the average Hoosier with debt owes about $32,000. With numbers like these we can expect many of our family members, friends and neighbors to experience some financial stress in the months ahead.
INvestEd wants to help Hoosiers manage their student-loan-related stressors, so a few tips to consider include:
Do not ignore the messages you are receiving about repayment. Contact your federal student loan service provider now to get more details on how much you will owe payment invoice questions.
Know who you owe. During the pandemic, the U.S. Department of Education changed out some of its contracts with federal student loan service providers. As a result, your payments might be going to a different entity when you start repayments.
Make sure your contact information is current. You may have moved during the pandemic, or you have a new email address. Either way, make sure your complete contact info is current by going to the Federal Student Aid site StudentAid.gov/.
Avoid the ramifications of defaulting. Failure to pay can negatively impact credit ratings and eligibility for future aid. If you can’t make a payment, talk to your loan provider about repayment options for your specific situation.
INvestEd has worked with Hoosier students and families for more than 40 years to make education beyond high school as affordable as possible. That work continues and we stand ready to help borrowers navigate the new realities of federal student loan repayment.