UW–Madison’s Nick Hillman, a professor with the School of Education’s Department of Educational Leadership and Policy Analysis, shared his expertise with NBC affiliate WMTV-Ch. 15 recently in its segment, “How the debt ceiling will impact student loans.”
Hillman is an expert in how finance, policy, and geography shape educational opportunities, and is the director of the university’s Student Success Through Applied Research (SSTAR) Lab.
Included in the bill to avoid a default on the debt ceiling is a reinstatement of student loan payments, beginning 60 days after June 30.
In the segment, WMTV explains that ever since Biden announced his debt forgiveness plan almost a year ago, “students are stuck in a limbo of not knowing exactly what their bill is while the un-pausing of payments potentially sits around the corner.” According to Hillman, this includes around 44 million people across the country who hold student loans.
To prepare for the possible reinstatement of payments, “Hillman suggests finding out who your loans are through and getting their correct contact information, along with setting up a payment plan,” notes WMTV. “He says being prepared is essential as penalties for avoiding payment are severe and include dings on your credit history and even garnishing of wages.”
Hillman states: “I’m worried the most about students who have never had to engage with the loan repayment system in the first place.”
To learn more, listen to the full segment.