MILWAUKEE — Student loan repayments are set to start back up at the end of August as part of the debt ceiling deal. But there is a chance that the first payment might be due even sooner. The back and forth has a lot of people with loans wondering how to plan.
“It's been a little up in the air. I have been trying to keep tabs on it,” said Elaina Rubeo, a UW-Milwaukee graduate whose loans are on pause. "So it has been a little confusing."
What's confusing is when the student loan pause is lifted there will be 60 days and then the first payment is due. The question is when those 60 days will start.
In a deal between President Biden and Republicans to pass the debt limit bill, it says the pause comes to an end 60 days after June 30. That day is Aug. 30. Or 60 days after the Supreme Court rules on a separate student loan forgiveness program. Nick Hillman, a professor in the School of Education and the University of Wisconsin-Madison, says people with loans should not bank on the Supreme Court.
"I don't know how the Supreme Court is going to rule. But I would not be surprised if the Supreme Court says that cancellation is not gonna happen. And if the Supreme Court decides that then payments will be due Sept. 1 and or thereabouts so I think I would be preparing for payments. And then you'll be surprised if it gets canceled,” said Hillman.
He says even if the cancellation happens, it likely will not cover everyone's total amount of loans. So now is the time to make sure you are ready to make payments.
"Make sure that they have the right contact information in their loan servicer account. So make sure their address, their email address and phone number is all up to date, so that they can be in communication with their student loan servicer,” said Hillman.
Elaina says no matter what happens she knows she still has years of student loan payments ahead of her. The 2016 UW-Milwaukee graduate says she is getting ready now.
“I have been preparing for it to be lifted for a while because it has been back and forth. But yeah I am prepared to continue paying when it is lifted again,” said Rubeo.
Hillman's advice, especially if you are concerned you can't afford your student loan payment because your finances have changed: contact your loan servicer to see what your payment options are. It is possible you could qualify for another option to lower your payments.
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