MONROE, La. (KNOE) – A federal report shows that only 40% of student loan borrowers are making payments as of January 2024.
The U.S. Government Accountability Office found that as of January 2024, education held $1.5 trillion in outstanding federal student loans for nearly 43 million borrowers. Only 13.3 million borrowers were current on their payments.
The financial aid office staff at ULM say they always guide students toward the best student loan options as early as possible if they need them.
“And we include a “money matters” session in everything that we do on this campus to go ahead and start informing them of the difference in grants and loans and that a grant is free and loans have to be repaid – and here’s what the world says, but here’s the black and white: that you do have to pay those back. But they are here for educational purposes,” said ULM Associate Director of Financial Aid Erica Hopko.
According to the federal report published on Wednesday (Aug. 14), nearly 9.7 million borrowers were past due on their payments, which accounted for $290 billion in outstanding loans.
“A lot of people assume that they can wait; they have to wait to pay them back, but you don’t. You can actually pay them back while you’re in school. We tell them the difference in the one that accrues interest versus the one that does not while they’re in school,” said Hopko.
The report writes that 4.5 million borrowers were current on their payments and scheduled to pay $0 on income-drive repayment plans. While students are in school, ULM’s financial aid services say there’s no need for a student to take out a loan if they only have a thousand dollars left, for example.
“We do offer here for our students a payment plan, and it’s really beneficial to our students. It can split their balance into four payments. So, it’ll be like August, September, October, November for a fall semester,” said Hopko.
Students and parents can find resources on financial aid with the Louisiana Office of Student Financial Assistance here.
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