As interest rates on student loans increase, one Indiana organization wants to assist borrowers

Indianapolis, Indiana – Student loans will now start to charge interest for the first time in more than three years.

The U.S. Department of Education reports that as of this Friday, borrowers will once more be charged the interest rate they were paying before to March 2020.

Since 2003, INvested Vice President Bill Wozniak has assisted Indiana families, colleges, and high schools with financial aid efforts. Through INvested, Hoosiers have access to specialists who provide individualized advice on a variety of topics, including student loans, college savings, and more.

Wozniak advises families to get ready to pay back their debt.

“The biggest misconception goes both ways. We talk to families all the time that think, ‘There is no help for me, I am just going to default. I have no good option,’ and that’s usually not the case. There are oftentimes good options available. And then the other way, there are people that will say, ‘Nope, I don’t have to pay. Nope, that doesn’t apply to me’ and that’s often not the case.”

In order to determine which debts borrowers are responsible for repaying, INvested provides student loan checkups.

Wozniak says his team will ask borrowers a series of questions such as: “What are the terms on those loans? When someone calls us, we can make sure their contact information is correct and they have the latest information from the servicers. What are the loans that they’re obligated to pay and what are the rates on those loans.”

Wozniak wants families to be aware of their alternatives for paying down the debt.

“On federal student loans, sometimes the rate the amount they have to pay is zero and that counts as a payment, not always, but often.”

In a news release, INvested said its outreach team “will conduct over 800 events this year covering all parts of Indiana and also help more than 10,000 additional individuals with answers for their specific education funding questions.”

Beginning in October, borrowers will be expected to make monthly payments on their student loan balances.