PENNSYLVANIA, USA — In less than two months, some 43 million Americans are in for a rude awakening - student loans are coming back.
A COVID-19 moratorium on student loan payments expires and the White House doesn’t have any current plans to extend the pause, according to press secretary Jen Psaki.
"If Congress sends him a bill, he's happy to sign it. They haven't sent him a bill on that yet," Psaki said in a press conference this week.
President Biden campaigned on approving $10,000 in student debt cancellation per borrower, but he still has not done so.
Mary Jo Lambert-Terry, Managing Partner at Yrefy, says for those who have loans, they shouldn't put-off prepping financially.
“Come January 31, all those loans go back into repayment, which is very daunting...You may have had a $400 month payment, or a $200 month payment, or $1,000 month payment, but at this point, do you still have it in your budget? Do you have a job? Do you have the ability to move forward?”
In Pennsylvania alone, the average student debt is $32,000 and the state's total student debt is over $63 billion - a daunting number no matter what your financial situation is.
"Next to your mortgage, this is probably your biggest debt, which is really scary no matter what age group you're at," Lambert-Terry said.
So, where should you start?
"Take a few minutes and go to studentaid.gov, go to your loan servicer, make some phone calls, do research online…and then you're in control," Lambert-Terry said.
"That's the key thing. We want you to be in control. You know how much you pay, you know what your options are."
Lambert-Terry also noted since interest stopped accruing during the pause, taking small steps before payments begin can make a big difference
“As soon as the last January date passes, the interest on your loan is going to start to accrue again...so maybe each month instead of making the extra trip to your favorite coffee shop, send $25 in, send $30 or $40 and have that taken directly off your principal balance. Let's get these loans paid back as quickly as possible.”