Student loan repayment is still at a halt for millions of Americans, serving as a temporary relief from the Biden Administration and attributed to the coronavirus pandemic.

 

The end, however, is near for those postponed payments. On September 1st, accounts will be unfrozen and payments will be due once more. Financial experts tell 21 News this extra time should be used wisely.

 

"For those of us that can still afford to make payments, i recommend you make the payments," said Chris Mediate, president of Mediate Financial Services. "Simply because now you can start cutting into your debt which is going to be very beneficial for you in the future."

 

If you find yourself in a situation where you can't take advantage of this extra time and make payments, Mediate says it's important to have a plan and know which direction you're going to go when payments resume.

 

"Do a budget, take an inventory, see where your money is going," said Mediate. "See if you have any room at all and figure out what you can afford to pay and then try to see if that is something that will fit your payment plan"

 

Mediate tells 21 News defaulting loans can be damaging down the road.

 

"Student loan defaults are almost as if you're defaulting on your house, it's very, very detrimental to your future so you really need to take the time to figure out in a plan, how am I going to pay this back," Mediate said. 

 

Mediate also says the last thing you want to do is sit around, waiting for your loans to pick back up.

 

"Don't take this for granted that we're just not able to have to pay these currently right now, but understand that not paying them is not an option," he said.