LITTLE ROCK, Ark. — If you haven't been paying student loans for any reason throughout the pandemic, you're not alone. Nationwide, students have put them on the back burner to focus on more pressing bills.
With those payments set to resume soon, financial aid planners like Jonathan Coleman are staying busy.
"But it hasn't changed that between 80% and 90% of students say they're not financially prepared to make those payments," Coleman, Director for Financial Aid at the University of Arkansas at Little Rock, said.
Students come to his office to talk loans, and around 65% of students on campus are utilizing some sort of financial aid.
"That's right, a big part of the conversation was they're suspended, we don't know how long they're going to be suspended," he said.
Roughly the same number of college students across the country also borrow money for their schooling. But those payments have been on hold as those loans were put on hold during the pandemic.
"Collections stopped when the pandemic began, those will begin again," Coleman said. "Interest stopped accruing, that will begin again, all on February first, so it's all part of the conversation that has to be had."
That's not far away either – we're less than two months from when loans start back up.
"I think the most important thing is prepare now, start now," Coleman said. "It does feel like I've got 75 days, 90 days, whatever it is, but it's going to creep up on you. It's going to get here quick, and you want to be prepared."
You should stay ready. There's a lot that can happen between now and then, and a lot that can happen to those who don't repay what they've borrowed.
"Just like anything else, they'll go into default, they'll go to collections and they'll start garnishing wages," Coleman said. "They have the same freedom that they do if you stop making house payments. And the feds can do that, and they will."
So even though February 1 is coming soon, Coleman says don't panic, but stay ready.
There are options available, like working with your student loan provider about a plan that fits your budget.
"If you start preparing now, you'll be better, obviously better prepared for February first," Coleman said. "You'll maybe have some money set back, or maybe have that income-based repayment plan set up, so that first payment plan is not gonna destroy your monthly budget."
For more information on student loans, click here to visit the Federal Student Aid website.