The Biden administration announced in Dec. last year that it would extend the federal student loan moratorium originally set to expire Jan. 31 to May 1.
This extension means a few more months of relief for those with student loans.
However, Andrew Pentis, a certified loan counselor and higher education finance expert for Student Loan Hero, said anyone with student loans should double check before assuming the extension applies to them.
"You should contact your federal student loan servicer just to confirm that you have been and will continue to be eligible for this moratorium, as not 100 percent of federal loan borrowers are eligible," said Pentis.
Pentis spoke Wednesday on WDUN's Newsroom. He said recent data from Student Loan Hero shows Georgia ranking third in the nation for student loan debt.
While student loans may seem inevitable when seeking a four year degree, Pentis said there are some other options that are often overlooked.
"We all need to do a better job at the high school level and at the college level of educating families about how to apply for scholarships, state grants, how to open up a 529 savings account, how to do all these things," said Pentis. "So the student loans really just become that final last resort option."
Pentis said those who are struggling to make their payments have a few options. For those with a private student loan, the best option is to contact their lender and ask about a payment amount or interest rate adjustment. Another option is to research refinancing the loan, although that will depend on the applicant's credit.
Those with a federal student loan have a few more options than those with a private loan.
"If you have a federal student loan, the good news is that there are a bevy of repayment programs that make it easier to stop and start your repayment as needed," said Pentis. "Including with this unprecedented 25-month moratorium that's given federal student loan borrowers a break from their payments and to be able to catch up and save for those future payments."
To hear more from Pentis about student loans, click on the audio link above.
