Loans based on income “could solve the US student debt crisis,” (Photo: Times Higher Education)
Student loan repayments will commence in October
According to an article published by The Denver Post, under the conditions of a debt ceiling agreement approved by Congress, the pandemic-era freeze on federal student loan payments will expire this September and more than 40 million Americans will have to resume giving student loan repayments once more.
On September 1, interest on student loans will start to accumulate, and student loan repayments will resume in October.
For many borrowers, especially those in already challenging financial positions, this means making painful decisions.
It could be tempting to simply keep skipping student loan repayments, but doing so could have serious repercussions, such as harm to your credit and disqualification from future aid and benefits.
The Metropolitan State University of Denver’s financial aid staff has followed the back-and-forth on student loan forgiveness and is ensuring that students are aware of the newest developments, especially on student loan repayments.
About 30% of their students receive financial aid, according to Kerline Eglaus, Executive Director of Financial Aid & Scholarships
“We don’t want our students or anyone from the campus community to be startled if you don’t participate in this process,” Eglaus added.
Meet the new executive director of Financial Aid and Scholarships, Kerline Eglaus (Photo: MSU Denver)
According to a published article from 9News, Eglaus has student loan debt. She claimed that keeping up with all the changes in student loan repayments has been difficult.
She has been working with her office to ensure that kids are aware of what they are signing when they put their signature on the dotted line.
“Whether the loans were forgiven or not, the most important process was preparing our students for budgeting to cover student loan repayments, preparing them to have the tools and resources that they need to make informed decisions,” she stated.
Other borrowers from a separate college, unaffiliated with MSU Denver, are learning they will no longer have to pay, as Eglaus gets ready to instruct them on the student loan repayments procedure.
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