As student loan resumes this coming September. Student loan borrowers must be aware of their interest accrual.
Millions of Americans to Start Repaying as Student Loan Resumes (Photo: Green Country Federal Credit Union)
Millions of Americans to Start Repaying as Student Loan Resumes
According to CBS, many Americans must soon start repaying as student loan resumes in September after three years of being postponed.
As student loan resumes, millions of borrowers may be confused about what their balance was prior to the pandemic. According to the article, 20% of borrowers who graduated from college amid the pandemic are new to loan repayments. However, half of all borrowers are aware of how much they owe when the student loan resumes.
Borrowers’ Interest Accrual as Student Loan Resumes
As student loan resumes, borrowers must be aware of their interest accrual and the differences between subsidized and unsubsidized loan.
According to CNBC, direct subsidized loans are available to borrowers who are undergraduates and have financial need. This type of student loan doesn’t accrue interest while borrowers are still in school and will be postponed after graduating until the borrower gets a job.
However, unsubsidized loans start accusing interest immediately upon disbursement. Thus, the borrowers who can get this loan are only graduate students who do not demonstrate financial need.
It is also important to note that the interest accumulation on student loan resumes, and monthly payments will resume in October.
