With the end of student loan freezes brought on by the COVID-19 pandemic, many students will begin paying their student loans for the first time this upcoming October. As the day of payment approaches, the Office of Scholarships and Financial Aid has some tips for the student body.

Krista Ringler, director of the Office of Scholarships and Financial Aid, said the most important thing students should know is that nothing has fundamentally changed in the way students will be paying off their loans. 

“For students who have been enrolled, [loan payments] are going to be much like it was pre-pandemic,” Ringler said. “So if you’re currently enrolled, you’re going to have the same experience that students had pre-pandemic as far as how the process works.”

Jamie Pendergrass, associate director of the Office of Scholarships and Financial Aid, said that students should know who their provider is because they don’t want to risk missing key information on their loan payments.

“I would stress the importance of looking at [studentaid.gov] proactively because your loan servicer will contact you…when you’re getting close to a payment,” Pendergrass said. “What if you get this random letter from some random company…and throw it away thinking it’s spam? Well, that’s actually your service on it.”

Students are not expected to pay their loans until six months after they’ve left school. Once the Office of Scholarships and Financial Aid knows that a student has not returned to school, they will reach out with assistance.

“If we know [a student] has not returned, we proactively send them an email to say, ‘You should go out and complete exit counseling,” Ringler said.

Nonetheless, Ringler suggests that students capable of making payments do so because interest will begin accruing this month.

“It’s great advice, whether enrolled or not, if you can make payments of any amount, it’s a good thing,” Ringler said. “Particularly, as regards accruing interest, it’s always a good idea to pay them down just to keep them at a reasonable amount.”

Ringler said it is important for students to consistently stay conscious of their loans. There are several techniques NC State is currently employing to this effect.

“As of this past year, a new resource we were using from the federal government was having students annually acknowledge their student loans,” Ringler said. “What NC State does is we leverage the tools that the federal government provides and try to drive students to use them.”

Pendergrass said students should keep a few things in mind when taking on student loans.

“The first thing I always tell students… [is], ‘Do you need it all?’” Pendergrass said. “I always tell students to actually look at what you need to borrow in the whole totality of what other financial aid you might have received.”

Pendergrass said that students can be offered up to $7,500 in federal student loans but may not necessarily have to take up that much debt if it’s not needed. 

“Let’s say you borrow $3,000 at the start of the year,” Pendergrass said. “Towards the end of your year, something happens and you need more loan money — you can still come and ask for it because you can get up to that total amount that you’re eligible for an academic year.”

Pendergrass said there are three things to keep in mind at all times when dealing with student loans, especially since these factors can change quickly.

“Know how much you owe, know who you owe … and then if something in your life changes where you can’t meet your repayment obligation, it’s really important to reach out to your servicer right away,” Pendergrass said.

Ringler said staying on top of your loans, including being aware of who your provider is, will make the process of getting support if and when you need it much easier.

“There are all kinds of options that can give you a deferment or forbearance, give you more time and a different payment plan, something that will keep you in good standing,” Ringler said. 

Both Ringler and Pendergrass said the vast majority of students will not have to worry about their loans impeding their financial development.

“I think the important thing to know is that NC State students traditionally do very well with their student loans,” Ringler said. “Less than 50% of our students graduate with debt, and those who do graduate, graduate on average close to $20,000 total.”

Ringler said that the worries about students with hundreds of thousands of dollars in student loan debt do not represent the debt accrued by NC State students, noting that before COVID-19, NC State’s default rate was below the state and national average.

“These articles about people with $200,000 in debt are not NC State students,” Ringler said. “It’s private schools, medical schools, graduate school. … So while there are some students [in the United States] … that are struggling, … for most of them, the debt they have is completely within reach to be repaid back from the types of salaries they’re graduating with.”

Ringler continued this point by highlighting how important it is for students to use the wealth of resources available to them from the University beyond the Office of Scholarships and Financial Aid such as the Career Center, ePack and student job fairs.

“The goal of the University is to set the student up to leave us very successfully,” Pendergrass said. “All those options … bundled together should translate to a successful student loan repayment.”

To find more information on your loan repayment plan and loan service provider, visit studentaid.gov.