Federal student loan payments restarted at the beginning of this month. And borrowers in Michigan have a little help.
The state of Michigan has created a new website to help people with student loans figure out the best path forward.
Department of Insurance and Financial Services Director Anita Fox said borrowers should update their contact information so they know when exactly their payments resume.
"The last thing anybody wants to do is miss a payment because we know that that affects your credit. That will ultimately make it more difficult for you in the future," she said.
Michiganders have a total of $51 billion in federal student loans, with an average of around $36,000 a person. Loan payments across the country were paused for more than three years due to the COVID-19 pandemic.
Almost 1.5 million people in Michigan have federal student loans. People between 25 and 49 have the highest debt, at over $36 billion. But the debt spans the generations.
“We estimate that about 63,000 people over the age of 62 owe more than $2 billion in Michigan,” said Fox.
The website includes tips and resources. For example, some borrowers could qualify for reduced monthly payments, depending on how much they earn.
Fox said that as people get oriented, they should look out for scams.
"Don't ever give out your personal information," she said. "Don't direct your money to someone who calls you on the phone and gives you a different address or something that comes in the mail. Make sure that you're really dealing with your loan servicer and that your information is correct."
The new website is available here.
