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INDIANAPOLIS — Starting Friday, federal student loans will begin to accrue interest again after a pause of over three years. Subsequently, on October 1, borrowers across Indiana will need to start making payments on their student loans, including those who have not made payments since the beginning of the pandemic, such as recent graduates. This means they need to prepare for the financial impact of repayment.
Bill Wozniak, Vice President of Communications and Student Services at INvestEd, clarifies misconceptions about student loans.
“First, there are borrowers that think I do not have to pay because they heard everything was forgiven,” he said. “In some cases, borrowers can get credit for making a zero dollar payment, and they just didn’t know that opportunity existed.”
Wozniak reiterated that total loan forgiveness is not happening after the Supreme Court struck down President Biden’s decision.
“The blanket forgiveness is not happening, but different types of forgiveness or smaller payments seem like they’re going to move forward.”
He says, fortunately, there are free and comprehensive resources available to Hoosiers through the Indiana nonprofit INvestEd. These resources can help borrowers understand and prepare for what’s coming, optimize their repayment plans, and reconnect with their student loan servicer. With INvestEd, Hoosiers have access to experts who can provide fast and personalized guidance on their student loan repayment questions.
