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Budgeting for federal student loan repayments

Finding space in a budget during a time of high inflation is difficult.

INDIANAPOLIS — Federal student loans began accruing interest again Sept. 1, which means the first post-COVID payment is due soon.

But finding space in a budget during a time of high inflation is difficult.

When it comes to money, Dr. John Delony, with Ramsey Solutions, said the mathematic approach is simple: make more money or spend less money.

"You have to make a budget and decide, how much am I spending? How much am I making? Give every dollar a name," Delony said. 

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But this time around, reintroducing repayments could require more than cutbacks.

"This is going to be a matter of stepping back completely, taking the 30,000-foot view of your life and saying, 'I don't know if I can afford to live downtown anymore,'" Delony said, "It's not a matter of just stopping drinking lattes and stop with the avocado toast."

Two things that can help you stick with your budget are apps and the buddy system.

Budget apps like Mint, YNAB, or EveryDollar are as easy as texting a friend about a recent expense. They typically require users to enter their monthly income and list every expenditure. 

As for the buddy system, Delony said to try "clear the calendar" with your spouse or a friend. That means going through upcoming events and figuring out what you need to do versus want to do.

"Approach this new season, not in the spirit of fear, but in a spirit of intentionality and reality," Delony said.

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