Student loans: Will the current payment moratorium be extended?
The clock is ticking… Student loan payments are due to start in a month. Be prepared and see where things stand.
to be summarized
- President Joe Biden plans to announce the Student Loan Forgiveness Program by the end of the month. That’s when the current payment pause ends.
- One possibility: $10,000 in relief for some borrowers.
- Some advocates say this is not enough and they are concerned about the lack of details so far.
- Student loan payments have been on pause since March 2020, as part of the federal pandemic relief that was signed into law by former President Donald Trump and extended by Biden.
- There were no guidelines on when or whether payments would be restarted.
- It is reported that Biden will give borrowers with incomes less than $150,000 about $10,000 in relief. But his administration has been mostly quiet about the details.
What is happening
- Experts say the pause will likely be extended for the seventh time.
- why? These reasons include midterm elections, high inflation, and a lack of communication by loan providers.
- However, debt cancellation does not attack the high cost of higher education.
why does it matter
- Millions of Americans saddled with student loans have more than $1.7 trillion in debt. Most of it is federal.
- A 2022 study found that most Gen Z borrowers and millennials have delayed a major financial decision — such as buying a home — thanks to student loan debt.
- 59% of debt-burdened graduates said higher education had improved their chances in the workplace. 10% said they regretted it.
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