Will Sealy, co-founder and CEO of Summer, a financial advisory firm, offers some tips on how to prepare for the return of student loan payments.  

<div class="block">Will Sealy, co-founder and CEO of Summer, a financial advisory firm, offers some tips on how to prepare for the return of student loan payments.  </div>
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Wake Up With Cheddar

Stretching Your Dollar: How to Prepare for the Return of Student Loan Payments 

Welcome back to news. It's time to stretching your dollar. The debt finally signed by President Biden on Friday averting potential default by the US. So the bill came with multiple concessions including the resumption of federal student loan repayments for borrowers no later than 60 days after June 30th. Based on that schedule, borrowers can expect to see their repayments begin towards the end of August that those loan payments had been on ponds for the last three years. So some people are understandably confused about what happens next. So here I explain it all to us is will Seeley co founder and CEO of Summer. That's a digital platform that helps people reduce their student loans. Uh will such a pleasure to have you here. Thank you so much for joining us. So what's the best way to really sort of prepare for student loan repayment? Given the fact that so many people have spent quite a few years not having to pay this? Yeah, this is, this is a pretty big deal and that it's 42 million people with student debt and they have spent the last 3.5 years not having to pay their loans, if they have a government, what's called a federal loan from the government. And so in terms of preparing the most important thing is just first figuring out, do you have the budget set aside? And this is starting now in less than 90 days. So August 30th is when they are saying payments are going to start resuming, we know we're going to get more information from the Department of Education. And it's really important that you log in to the Federal Student Aid website. You make sure that they have your updated mailing address if you've moved over the last 3.5 years. Uh This is the time to make sure that you are checking all of those letters that you might have been ignoring. Um, and you want to open that up and make sure that you're not one in one of the one in four borrowers who has a different loan servicer now collecting your payments. So, are there special programs that maybe borrowers may not know about that? Potentially you out there that also might be able to help them with some? It's a great question. I think what gets lost in the conversation is it feels very zero sum like you're either paying or you're not paying. But what gets lost in that is that there are a lot of different ways to help. So there are programs called income driven repayment plans that tie to your income. And actually lower the monthly payment for most people with some subsidies provided by the government to cover the interest. So inevitably, if you qualify for one of those programs and most borrowers do, you could save hundreds of dollars a month on your loan payment. So if you're a teacher, a nurse, you know, you're worried about those high monthly payments, we highly recommend income driven repayment. And there are increasingly more and more employers that are actually paying down the student debt of their employees as a benefit program. And that's something that summer we do for a lot of employers is help them navigate how to help their employees tackle their student debt. We have about a minute left here with you. There's obviously a lot of uncertainty around how the Supreme Court's ruling of the Biden Federal student loan forgiveness plan will affect those repayments, what's going to happen? So we heard oral arguments a few months ago and it looked like a number of the justices are not in favor of this proceeding, which means that borrowers may not get the ruling they want of cancellation for their loans. So there's a lot of uncertainty ahead. There have been more changes to the student loan program in the last three months than there have been for the last three decades. And so I think people are really asking a lot of questions, but if you're a borrower today and you something on forgiveness happening, it's not guaranteed unfortunately, and the best thing you can do is look at those affordable repayment options to get ready for payments to resume in just 90 days. Very important information will thank you so much will see. And by the way for our viewers do, Mke went out while we did this interview. So that's what I was talking to the whole time. I will thank you so much for joining us coming up guys. We're just moments away from the opening bell on Wall Street. We'll see how stocks opened up for trade. Well, thank you so much.