BUFFALO (WBEN) - All student loans issued through the federal government are suspended from March 13 through September 30 of this year as a way to provide some economic relief amid the Covid-19 pandemic.
However, college planning specialist Jeff Boron says that, if feasible, it may be a good idea for those in debt to continue making payments.
"The rate will be set at 0%, and you won't have to do anything - if the money was coming out of your checking account through a direct draft, that will stop," said Boron. "However, with that being said, with interest rates at 0%, if you make a payment on your student loan, all of that money will be applied directly to principle, and that will help you pay off your loan faster."
Of course, Boron realizes that simply may not be possible for a lot of people, which is why it's good that the payments are suspended.
"The advice is to look at your current cash flow - maybe your current income has been affected by coronavirus and you have no choice," he began. "But, if your income hasn't really been affected, and oh, by the way, you happen to get another $1,200 with the stimulus credit, you may want to pay those student loans because of the fact that you're going to take off a big chunk of principle instead of paying a combination of principle and interest."
