Student loan interest resumes for nearly 8 million ‘SAVE’ plan borrowers

Minnesotans are facing student loan debt and for many of them, their monthly payment is now going up. That's because this month, people enrolled in the Biden era save plan will have to start paying interest again. Renee Cooper joins us live from the University of Minnesota with a look at who is impacted and how much more they could be paying Renee. Of course, and I'm told 700,000 people in Minnesota have student loan debt and 85,000 of them are in default. This news just adding to the uncertainty for many college students here that have loans. It's definitely hit me that my loans are gonna be a lot more expensive now. Logan Johnson headed into senior year at the University of Minnesota and they're already pretty expensive. So it's not really the best, uh, morale boost for me to hear that kind of news. Johnson not on the hook to make payments yet, but looking ahead to graduation is daunting with federal repayment policies in flux to the last few years. Now the save plan is not an option. So the save program was a, I'll say, deferred system. It's financial advisor Justin Gander. It explains save was created under President Biden to help those struggling to keep up with high interest loans. It's come to an end and now there's not necessarily payments do, but your interest is going to likely start accruing exactly how much that adds to your monthly bill depends. But the average borrower is looking at $300 more per month in interest. In a july press release, the Department of Education says the save plan was a false promise, adding quote, the trump administration will support borrowers in selecting a new legal repayment plan that best fits their needs and helps them get on a sustainable financial path while protecting american taxpayers. Gander says there are several options like the income based repayment plan meant to cap monthly payments at a rate manageable after other bills are paid. There's also a standard repayment that you can pay off over 10 years. Also income based still. I mean there's no 100% do this or that. It really depends on your situation. He says as burdensome as it might feel now is the time to look ahead before interest accrues for months or years. This is the time to do it. I know it's not possible tomorrow as we all wish it would. But the goal is to get rid of the student loans as soon as possible, paying the least amounts and be done with student loans and never have to look back at them again. Now here in Minnesota, the Department of Commerce has an office that was specifically created to advise and assist borrowers. I recently sat down with the state's first student loan advocate. I've got that in for interview that is and information on how to connect with him over on K. S. T. P. Dot com right now live in Minneapolis tonight. Renee cooper five eyewitness news.