Anyone who has student loans is aware of the deal. You received the loan for school. After you graduate (or quit taking classes) the loan will need to be repaid. There is no free lunch in life, or higher education, in the United States.
Although we might not agree on the idea of student loans being a burden on our finances, but we are aware that they have to be paid…or should they?
It has been reported that the Biden administration has stopped student loans over and over in an effort to give some relief as COVID is a burden on the economy. As of now, student loan payments have been suspended for over 16 months.
The latest pause will end at the end of August. It is then expected that we'll begin making payments again.
But there's one caveat: the Biden administration hasn't yet decided whether or not they'll help pay the loans. Joe Biden ran on a platform that promised to pay at least $10,000 worth of student loans for each borrower.
Certain progressive Democrats do not think that $10,000 is sufficient. Some have been calling for $50,000 per borrower. Some want all student loans canceled to ensure everyone gets an opportunity to start fresh.
Eliminating student loans could cause a major problem for the deficit of the federal government. One advantage is that the system for student loans can be restored in a way that people don't have to be paying fees a long time after they have taken out loans.
It is not uncommon to be 45 and still paying on loans from the young age of 18. But that's the unfortunate situation for a lot of Americans and a large part of it is due to the absurd interest rates being paid.
We're in August already, and we've not heard what kind of loans will be forgiven. This means we're expecting to pay the loans once the pause is over at the end of August.
Naturally, if we made payments on the student loans, if they were to be forgiven later on down the road, we'll not receive any sort of reimbursement. Many are left wondering if it's worthwhile to pay the loans, or if they should just wait for the loan forgiveness to be approved by Congress.
The total student loan debt amounts to $1.7 trillion, which affects more than forty million Americans. This is a huge amount of money, which is one of the reasons it has taken so long for them to make a decision. Democrats have accepted the situation, while Republicans claim it's fiscally irresponsible.
We're getting close to the end of the pause and repayments will begin in a couple of weeks.
Reporters asked Biden on July 20th when a decision was expected to be made. Biden replied, “by the end of August.”
It is possible to expect, at the very least, some form of forgiveness or maybe an extension until a final decision is made on giving the debt back.
Bloomberg recently announced that there will be a second extension in addition to the forgiveness of $10,000 of Federal student loans.
Forbes reported the following, “Should Biden sign off on a mass cancellation, relief should be quick, as the Education Department has prepared an in-depth plan to act on student loan forgiveness.”
Democrats tend to be spectacular in their timing. It's likely that this all will occur before the masses head to the elections in November. Therefore, if you hold student loan debts, you should anticipate at least some decision before you start paying back the loan at the end of August.