Student loan repayment begins for millions

 

MILWAUKEE (CBS 58) -- Student loan repayment began for student borrowers across the nation Sunday, Oct. 1.

It's been three years since people with student loans have had to pay anything back to the government, but as of Sunday, that grace period has come to an end.

Some people with loans from the government said the repayments would put them in a financial dilemma.

"For it to come back, it’s really kind of a gut punch," said actress Jocelyn Zamuido.

Zamuido is joining the nearly 45 million people paying back their student loans.

The loans restarted after a three-year pause, which was enacted in 2020 during the Trump administration.

"It's been really hard to just like stay afloat, I think everybody is kind of just paycheck to paycheck," said Zamuido.

The reprieve, a part of a series of pandemic-related economic relief measures, refreshed the financial clock for some, now that time has run out.

During the three years, borrowers did have the option to continue making payments on their loans.

"I think it’s a really smart decision, either paying while there was no interest accruing -- of course students are going to pay less in the long run," said Susan Teerink, associate vice provost for financial aid and enrollment services at Marquette University.

Some people were hopeful that Biden's promise earlier this year to cancel $20,000 of student debt would pan out, but it was a plan rejected by the U.S. Supreme Court.

"Just pay that $5,000 and then be done, but guess it didn’t happen," said Pat Hendricks, who's $15,000 in debt.

This summer, President Biden rolled out the Saving on A Valuable Education (S.A.V.E.) Plan, an income-driven repayment option looking to meet borrowers where they are.

"For a lot of us, it's something maybe right now, financially, we can't do," said Zamuido.

For more information on student loans, click the link here.