GREENSBORO, N.C. — A new month means an old normal for millions of student loan borrowers, who are combing through mountains of paperwork trying to locate loan agreements amid the government's resuming of student loan payments post-pandemic.
What they find, however, might no longer be valid, as loan companies, themselves, have hardly been idle during the long pause.
Financial literacy author and Debt Sucks University founder Ja'Net Adams is finding her clients have questions and concerns as the wheel of student debt starts rolling again.
'GET IN THE KNOW'
"During the student loan pause millions of student loans were switched from one company to another. That means the company you were paying in 2020 will not be the same company you will pay going forward," Adams said.
The loan transferring process is similar to that of a mortgage.
"If you are unsure who you should be sending money to then you need to reach out to the Department of Education and find out. The Dept. of Education will have all of your information on file, so you can be confident that you will get the answers you need," she explained.
STAY ON TOP
Adams also warns her clients to be mindful of cryptic moves from certain lenders.
"The one thing with student loan companies is that they are going to try and pull some tricks. I recently found out that one of the student loan companies has been putting people into forbearance without their permission. That means your balance is growing bigger because no payments are being made, but interest is still accruing. If you have student loans make sure this is not happening to you," she said.
A FAMILY PROBLEM
Because of the hefty loan amounts, many lenders have been paying on the loans so long, they now have college-age children filling out loan forms. She encourages families to organize and streamline current and future debts.
"The FAFSA has decided that instead of releasing their application on October 1st they are not releasing it until December. The reason for this is that they are making the application more simple, but the confusion for families and colleges has been massive. So now you should be completely focused on getting your student loans paid and prepare what you need for the FAFSA when it comes out in December." she said.
Keeping an eye on the prize -- being debt-free -- can help borrowers stay on course.
"There is a lot going on right now in the student loan space, but having laser focus on your student loans will help clear up a lot of the confusion," she concluded.