Why Student Loan Payments Are Higher After COVID Pause

Episode 40 of Debt Payoff with Fexingo: Lucas and Luna examine why millions of borrowers saw their monthly student loan payments jump after the COVID payment pause ended in late 2023. They break down two main drivers: interest capitalization that inflated principal balances, and servicer processing delays that caused missed payments and higher interest accrual. The hosts explain how a typical borrower with $35,000 in loans might see payments rise by 15-25 percent, and offer concrete steps to check if your new payment is actually correct. Specific advice includes requesting a refund for any auto-debit payments made during the on-ramp period, and filing a complaint with the FSA Ombudsman if servicers recalculated incorrectly. #StudentLoans #DebtPayoff #Finance #FexingoBusiness #BusinessPodcast #LoanServicing #InterestCapitalization #PaymentPause #COVIDDebt #BorrowerRights #FederalStudentAid #IDRRecertification #LoanRepayment #PersonalFinance #MoneyTalk #ConsumerFinance #DebtStrategy #PodcastEpisode Keep every episode free: buymeacoffee.com/fexingo