West Des Moines, Iowa (RI) – While there have been discussions about potential student loan changes by the Biden administration – and possibly the loan cancellation, experts don’t suggest waiting until something is happening.
At the Iowa Student Loan nonprofit, President Steve McCullough says you shouldn’t wait to see what the federal changes are before considering your loans.
(as he puts it) “The most important thing these people can do now rather than wait for more help is to call their loan officers and find out about the tools already in place that can help them.”
McCullough said. He says this is an important issue that needs attention.
(as he puts it) “There are student borrowers who are in desperate need of help. Not all student loan borrowers – in fact, it’s only a minority percentage of borrowers who are really in crisis – but for those borrowers, they really need help, ”McCullough said. “So it’s good that policymakers are looking to provide additional help for student loan borrowers. “
College students had ten years after graduation to pay off their student loans. McCullough says that has changed.
(as he puts it) “Over time what happens is borrowers have had a lot more repayment options and more time to repay,” according to McCullough. “There is currently a program called Income Based Reimbursement, or Income Based Reimbursement, where people will pay as a percentage of their income. And if that loan is not repaid after 20 years, that remainder is written off. “
McCullough says everyone is different and you should take a look at your own situation and see what’s best.
(as he puts it) He says if you are having trouble making payments you should look at the income-based payment program as it may reduce your payout amount and if you don’t get a better job, the amount will eventually be canceled.
McCullough says you can also call Iowa Student Loan and they can help you find the information you need to think about what to do with your student loans.
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