LOUISVILLE, Ky. — During the COVID-19 pandemic, the U.S. Department of Education paused student loan payments and set an interest rates to zero percent for eligible federal student loans.

After three years with no payments, experts say it can be tricky to add the loan payment back into your monthly budget.

Organizations like the Financial Empowerment Center in Louisville are offering help to student loan borrowers.

What You Need To Know

  • After three years with no payments, experts say it can be tricky to add the loan payment back into your monthly budget

  • Orgainizations like the Financial Empowerment Center in Louisville are offering help to student loan borrowers

  • The first step is to go to www.studentaid.gov to learn the status of your loan

  • FEC office has free one-on-one appointments you can make online or call (502) 585-4622, ext. 6

FEC financial councilors are trained to manage student loan repayments.

Their goal is to help Kentuckians understand that they have repayment plan options, plans that include adjustments for income and household size.

One option includes the Saving on a Valuable Education or “SAVE” plan.

The income-driven prepayment plan provides the lowest monthly payments, and any unpaid interest will be paid by the government, as long as the borrower is making payments.

“if you make an appointment, if you go online or you call and make an appointment or you call,  they can help you maybe get a better interest rate, or lower your payment in a number of ways, and make it easier for you to fit those loan payments back into your budget,” said Aaron Selbig with the Louisville Metro Office for Resilience and Community Services. 

The first step is to go to www.studentaid.gov to learn the status of your loan.

From there, the FEC office has free, one-on-one appointments you can make online or by calling (502) 585-4622, ext. 6.

The FEC said they can help you figure out how to work your loan into your budget and help you get it paid off.

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