90% of federal student borrowers say they are not willing to pay student loans from October 1st.
Here’s what you need to know.
New interview of 23,845 federal student loan borrowers shows that 90% are not willing to pay on student loans when the student loan exemption from the Covid-19 pandemic ends on September 30, 2021. advocates that President Joe Biden Extend Student Loan Benefit After Covid-19 Pandemic… According to the survey:
- No student loan payments: 90% of student loan borrowers are not ready to start repaying student loans again on October 1, 2021.
- Delay until September 2022: 65% of student loan borrowers say they are not ready to pay on student loans until September 2022 or do not know when they will be ready.
- Incentive Covid-19: 80% of student loan borrowers say they are currently dependent on coronavirus aid for federal student loans.
- Suspension of student loan payments: 75% of student loan borrowers say a pause in payments is necessary for their “financial well-being.”
- Student loan payments: Nearly 33% of student loan borrowers say more than a quarter of their income will go towards paying off student loans if student loan payments are due from October 1st.
- Financial stress: Before the Covid-19 pandemic, 26% of student loan borrowers rated their financial well-being as “bad” or “very bad.” Today it is 43%.
According to the survey, the Covid-19 pandemic is also a history of racial inequality, especially with regard to student loans: “Blacks, Hispanics and Indigenous people with student loan arrears faced major economic hurdles during the pandemic and are less likely to say they are willing to renew paying off their federal student loans … 94% of black borrowers do not feel financially secure enough to resume federal student loan payments in October 2021 … 45% of Latin American borrowers rate their current financial well-being as poor or very poor compared to 28% who rated their health the same way before the pandemic. “
Biden May Extend Suspension Of Student Loans, But No Guarantee
Until Biden Cancels $ 3 Billion Student Loans since he became president, there is no guarantee that Biden will extend the grace period for his student loans. Pursuant to the Care Act – a $ 2.2 trillion stimulus package – Congress introduced several types of student loan benefits through September 30, 2020:
- suspension of federal student loan payments;
- temporarily setting interest rates to 0% on federal student loans; as well as
- stopping collection of federal student loan debt in the event of default.
President Donald Trump has extended the student loan exemption for four months until January 31, 2021. Biden then extended the student loan exemption for eight months until September 30, 2021. Biden also extended the student loan exemption. 1.1 million student loan borrowers with FFELP loans which were not included in the Cares Act. The U.S. Department of Education estimates that by September 30, 2021, student loan exemption will provide student loan borrowers with Cancellation of over $ 90 billion student loan during the Covid-19 pandemic.
Senators: Postpone Student Loan Payouts Until March 2022
More than 60 U.S. Senators wrote to Biden this week about extending student loan benefits beyond September 30. It is advisable that they convince Biden to extend the student loan exemption until at least March 2022. 4 bad things will happen if student loans are not suspended and student loan borrowers must start paying off student loans on October 1st. In addition to the ongoing financial crisis due to the Covid-19 pandemic, senators say that serving student loans – who they say failed student loan borrowers during the Covid-19 pandemic – ill-prepared to process student loan payments and include borrowers in income-driven repayment plans. US Education Secretary Miguel Cardona said in testimony in Congress last week that discussions about a possible extension of student loan exemptions are ongoing.
If you have student loans, make sure you have a student loan game plan. Student loans cannot be suspended and student loans cannot be canceled. Here are some smart options to consider to save money:
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