INDIANAPOLIS — After more than three years, millions of Americans will have to start repaying their student loan debt this month.
For some, payments cost as much as rent.
“My federal ones, they wanted it to be like $590 a month. Plus my private $360," Adam Spencer said.“I was the type of person who was like ‘I’ll pay it back later, it’ll be okay.’ But now we’re here.”
The IUPUI alum graduated from the accelerated nursing program in December 2021.
Now, he works as a cardiac ICU nurse at IU Methodist.
Spencer says he’s going to have to pick up extra shifts at work and lay off on trips to the coffee shop to help pay off his $65,000 in debt.
“Right now I feel like it’s weighing on me so heavy. I haven’t even started paying yet you know," Spencer said.
It’s a similar story for Tony Viviano, who got his bachelor's at McKendree University and master's at IU.
The first generation college student says there was very little information given to him before borrowing tens of thousands of dollars to pursue his higher education.
“At 17, 18 years old, what you’re doing, there’s no education on even the loan types. They don’t tell you what a parent plus loan is, a subsidized, unsubsidized, when to take out a private loan when to not take out a private loan. There’s no education," Viviano said.
A Bankrate study finds 44% of people say that students are not educated enough about the pitfalls of student loan debt before borrowing.
Viviano works in fundraising and has a side gig teaching.
Even with two sources of income, he’s bracing himself for the additional cost every month.
“Now with the private loan plus the federal loans it’s $483 so I’m back to paying double again," he said.
In June, the Supreme Court struck down the Biden administration’s student loan forgiveness program, that would’ve erased roughly $400 billion in student debt.
But Bankrate Analyst Sarah Foster says that doesn’t mean that there aren’t options available to save you money.
“There might be more options for you than there were three years ago to at least find a cheaper payment and something that works more manageably for your budget," Foster said.
The Department of Education currently offers four main income-based repayment plans, including the latest Saving on a Valuable Education (SAVE) plan.
Under SAVE, repayment periods last from 10 to 25 years, based on the amount you borrowed and whether it was for undergrad or grad school.
Any remaining balance would be canceled.
“Right now if you make close to $33,000 a year, you might see a payment as low as $0 a month," Foster said.
Your servicer should inform you 21 days before your due date on when you should start making those payments.
Find your login info, go on the website and check your inbox if it’s been awhile.
