Monroe County

Rochester financial advisor offers advice for student loan borrowers

Rochester, New York — Last week, the student loan repayment pause was extended through August 31 by President Joe Biden.
Since the beginning of the COVID-19 pandemic, the freeze has been in place.
The biggest tip a local financial advisor has for borrowers is to be prepared to repay those student loans no matter how long the pause continues.
“They are eventually going to come due again,” said Pamela Hart of Consumer Credit Counseling Services of Rochester. “So if financially you still have that money available to make your payments put it into a savings account. That way you still have that money allotted in your budget, so when that money or student loans come due again it’s not going to be a shock to your budget.”
According to Hart, her biggest concern for her clients is that they aren’t used to paying student loans anymore.
If you don’t have it in the budget to pay the same amount you would towards student loans, save something, even if it’s a smaller amount, she said.
These two years without student loans not accruing interest doesn’t mean it’s just forgotten; it means they will be added on to the end of your payment plan.
 

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