Oklahoma financial expert offers advice for restarting student loan payments

Starting this week, the federal government resumed collections on federal student loans that are in default, for the first time in five years. On Thursday, an Oklahoma financial expert offered tips to navigate repayment. 

Financial institutions have started collecting funds from borrowers' wages, tax refunds and social security benefits. 

BOK Financial said it is possible to navigate paying these student loans back while minimizing stress and saving money. 

"I remember finishing college and thinking, ‘now I have to pay a student loan on top of paying my rent, on top of paying my gas, on top of becoming independent,” began Jhoanna Astudillo, Vice President of BOK Financial. “I'll say the first thing — just take a deep breath." 

More than five million borrowers are in default, meaning they have not made a payment in 270 days. 

“They have to make a shift. They haven’t been paying for five years, so they were not taking in consideration that the money was going somewhere else. I think the first step is just to sit down and [figure out] ‘where is my money going?’” shared Astudillo. 

BOK Financial said people can minimize the stress of repaying student loans by creating a budget. 

“So they can understand how much they make, how much they're spending — so then they can create a safety net for savings. I think a lot of it has to do with we don't learn that in college. You just have to learn it on your own,” the vice president of BOK Financial explained. 

To assess your financial situation, “The first thing is to understand [if] they have one loan, if they have multiple loans; where are they coming from, and then what rates are they being charged?" 

BOK Financial added that it’s important to make a realistic budget. In other words, one that is easy to follow. 

"Put a cap on your non essentials; your entertainment, but do not erase them because I've seen time and time again when people get a little too strict with the budget, it's very difficult to keep up if it's not sustainable." 

The Department of Education says roughly 4 million borrowers are in late-stage delinquency, meaning a payment has not been made in more than 90 days, and are quickly headed for default. 

Over the next two weeks, all student loan borrowers in default will receive an email from the Office of Federal Student Aid notifying them about their student loan status.