Student loan debt can be complicated to manage. Gladys Coward of GreenPath Financial Wellness shares insights with News 4 San Antonio about what to keep in mind.
News 4 WOAI San Antonio, Texas regularly shares consumer information as part of their regular broadcast, providing the latest on managing finances especially in challenging times. The news outlet recently shared a consumer segment on what to consider when looking to manage student debt.
Together with our affiliates including resources in San Antonio, we have assisted millions of people with debt and credit management, homeownership and home buyer education, foreclosure prevention and student loan counseling. GreenPath provides specific guidance for those looking to manage student loans.
As the news segment notes, nearly 50 million Americans owe student loans, with a combined total of $1.6 trillion. People can manage that debt with a variety of payment options
If your family’s financial situation has been impacted by the pandemic, you may have some relief. Under the CARES Act, payments of federal student loans are temporally postponed until September 30, 2020, with no accruing interest to worry about. If you have privately funded loans, contact your loan provider. They can help walk you through your options.
Once the temporary pause in payments end, however, many people will find it useful to have a game plan to move forward.
Once the deferrals end, interest on student loans will build. The sooner the debt is paid off, of course, the less people end up paying overall.
So it does help when extra money — maybe a bonus or a tax refund — is used to pay off some student loan debt in order to reduce the outstanding student loan balance.
When it comes to paying down student loans, many people find it useful to make extra payments towards student loans with the highest interest rates first. That will save the most money.
Setting a Game Plan
Some borrowers say they’ve developed a game plan for paying down student loans, and many believe this is the best strategy once CARES Act relief expires.
Debt counselors at GreenPath Financial Wellness stress the importance of establishing a budget and working with your school’s financial aid office. GreenPath can also offer information about student loan repayment options. Your financial aid officer can help you understand your student loan package and explore other funding options and guidelines.
GreenPath Is Here To Support You
Our financial counselors are available to talk about debt and financial wellness. Student loans are part of the picture. One-on-one counseling will help you identify options that can relieve financial stress and make it easier to manage finances.
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