According to the Education Data Initiative, although the average student loan balance in Indiana is lower than the national average, Hoosiers borrowers owe about $30-billion. Photo from Adobe Stock.

By Joe Ulery
Indiana News Service

INDIANAPOLIS — Hoosiers are reworking monthly budgets as the pause for federal student loan payments comes to an end, and the stress of another monthly expense begins.

More than 900,000 borrowers in Indiana and 40-million throughout the country have until October to figure it out.

According to the Education Data Initiative, the average borrower in Indiana holds over $30,000 in student loan debt.

Brian Walsh, certified financial planning manager for SoFi, said any time someone starts doing something they have not done for a long time, it causes uncertainty and anxiety.

“Generally speaking, we are encouraging people to make sure they understand what loans they have after 3.5 years of not paying them,” he said. “Figure out whether or not they can afford the payments that are starting back up, and then decide what’s most important to them to really kind of land them the best approach for repaying their student loans.”

Walsh said although the Supreme Court ruled against student loan forgiveness, he believes the matter may not be settled. President Joe Biden announced an alternative path to forgive some loans under the Higher Education Act.

Walsh said one borrower option bases monthly payments on income.

“Essentially, income-driven repayment plans limit your payment to a percentage of your discretionary income – so more of someone’s income is excluded in that calculation,” he explained. “It’ll be much more generous for student borrowers than the other options that are available.”

Other options include extended, graduated repayment plans, or refinancing loans to extend repayment periods and lower the monthly payments.