From today, your student loan will start accumulating the interest rates set when you borrowed the money|Image by Freepik
Student loan interest accumulation, paused during the COVID-19 pandemic, resumes today. Borrowers will have to start making repayments from October 1.
Finance experts and economists warn that soon-to-begin education loan repayments will cause several consumer bank balances to balloon for the first time in three years.
If you are a student loan borrower, here is what to know.
- Your student loan will begin accumulating the interest rates set when you borrowed the money.
- Unless you’re refinanced, the interest rate remains the same.
- Direct loan borrowers who opt for automatic debit payments get a deduction of 0.25% in their interest rate.
Find out if you are eligible for the SAVE plan and apply for the income-driven student loan repayment plan. It will help save $1,000 a year and even cut monthly payments to $0 in some cases.