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'Put that money aside': Financial advisor Sherri Goss gives tips on budgeting for student loan repayment

With student loan repayments starting again in January, financial advisor Sherri Goss says now is the time to prepare.

MACON, Ga. — The CARES Act gave some relief for people who saw the financial strains of COVID-19. One less bill to worry about includes student loans, but starting next year, that will change.

"So the biggest thing people need to do is pay the loan payment in January," says financial advisor Sherri Goss.

Goss says now is the time people should start reaching out to their lenders and find out what their options are, especially if there's been a change of income.

"If you can't afford your monthly payment loan, you need to consider applying for an income driven repayment plan," she says. "If you're in an income driven repayment plan and your prior payments were based on a higher salary than what you're making now you need to contact your lender and request a re-calculation."

Goss says with more than a month left to prepare, there are a few tips to keep in mind, especially as the holidays approach.

One is writing down your spending on a regular basis.

"You'd be amazed at how this does for your mind. It helps you really become aware of every spending decision and there may be things that you've gotten into a habit of spending on because of this shut down that maybe aren't really necessary. You can stop that behavior and put that money aside for this student loan payment instead," says Goss.

She says another way to make room in your budget from loan payments again is to not buy gifts at all, regardless of who it's for.

"People need to give themselves a little break. The worst thing they can possibly do is buy gifts and go into more debt just because they feel like they're compelled and feel like they have to," says Goss.

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