DENVER (KDVR) — Unless the federal government decides to extend the freeze on repaying student loans, hundreds of thousands of Coloradans will have to start doling out more cash each month to pay off their college bills.
The moratorium on repayments is just about a month away on May 1.
According to data from Student Loan Hero, there are about 800,000 Coloradans who still have federal student loans they have to repay.
The average balance per Colorado borrower is just under $34,500, which means if the moratorium isn’t extended past May 1, most Colorado borrowers will have an additional $307 bill to pay each month.
Brand new research from Student Loan Hero shows 72% of federal loan borrowers say they’re not financially ready to resume monthly payments.
While the Biden administration has hinted at another extension, experts say if an extension doesn’t come, there are things Coloradans can do to delay payments or help lower their monthly payments.
“So the best option for Federal Student loan borrowers in Colorado will be to look into an income-driven repayment plan. There are a variety of these repayment plans. Essentially what they allow you to do is to limit the amount you have to pay to your service each month as a percentage of your discretionary income,” said Andrew Pentis, a senior writer at Student Loan Hero.
Experts say that way you can stay current on your loans while making smaller payments. Interest will continue to accrue, but not as fast as if you weren’t making payments at all.
According to experts, we should learn in the next few weeks whether federal student loan repayments will be extended again.