Student loan payments loom over Florida as program pause set to end

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ORANGE COUNTY, Fla. — In just a few weeks, millions of Floridians will resume shelling out hundreds of dollars per month in federal student loan payments – unless President Biden acts first.

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The payments have been on hold since March 2020 thanks to a pandemic-era measure to assist families financially as job losses piled up. The pause has been extended several times, and many are hoping the government delays their timeline until 2023.

“It’s definitely going to be putting me in a little bit more of a bind,” Suraj Dave said.

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More than two million Floridians owe the federal government at least some money for their education, averaging about $38,000 per household, Yrefy Managing Partner Mary Jo Terry reported. The average monthly payment amounted to about $400.

Terry said her clients range from 20 years old to 70, including students themselves, parents and grandparents. Many spent the past two years putting the $400 per month toward savings, paying off other debts or paying for necessary items like housing and food.

She has been warning them to prepare as if the payments will resume, especially if their financial situation has worsened since 2020.

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“The last thing you want to happen is May 1 comes along and $400 gets taken out of your bank account because you were on auto debit, and you weren’t expecting it,” she said.

Terry’s advice was for borrowers to check their statuses online and contact their servicers, if needed. Some people could look into an income-driven repayment program or defer if money is especially tight.

“Take five minutes at lunch in the morning when the kids go to bed, wherever fits, take five minutes and see what your options are,” she explained. “Obviously, knowledge is power.”

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