State of Michigan, NMU provide tips on how to pay student loans

MARQUETTE, Mich. (WLUC) - Despite the forgiveness from President Biden, payments for federal student loan borrowers will resume this month.

Institutions like Northern Michigan University (NMU) are devising ways you can be proactive on upcoming payments.

NMU Director of Financial Aid Mike Rotundo said a key tactic borrowers can use is a simple budget plan.

“They really should be working through a personal budget. Reviewing their budget plans, and what payments they’re making. Seeing that will help them identify what level of payment they can afford within their current financial structure,” Rotundo said.

The state of Michigan’s Department of Insurance and Financial Services (DIFS) created the Student Loan Payment Restart guide for what borrowers should do now. DIFS Director Anita Fox said the new page provides various resources pertaining to current loans.

“You’ll be able to get information on how to find who your loan servicer is. Because you need to know that if you want to contact them and find out, you know, when your payments are going to resume or how much they’re going to be,” Fox said. “Or if you’re having trouble making your payments, you think, wow, that’s going to be a lot for me with other debt I have.”

Rotundo says each loan is different amongst borrowers and requires a different approach.

“There’s a student loan repayment simulator, where it’ll take a look at based on their personal information what are the different repayment options so that they can select which plan fits with what their repayment strategies,” Rotundo said.

Both Rotundo and Fox say to contact your loan borrower to discuss how much you can pay off each month and which strategy suits you best.