Lafayette – Student loan borrowers may have more time before they have to resume their payments as the federal student loan freeze expires in October.
The freeze on federal student loan payments and interest rates expires on October 1. College students and recent graduates are looking forward to an extension.
“I am totally in favor of postponing this until March,” said recent graduate Marcel Johnson.
The suspension of federal student loan payments has been in effect since the start of the pandemic in March 2020. With the October deadline approaching, Johnson says he already has enough money.
“You’re already worried about finding a job right out of college, which isn’t easy,” Johnson said. “And then you want to add student loans, and it’s like I’m already thinking about 30,000 different places.”
Johnson is currently looking for a job in his specialty. He says that as he tries to move from a full-time student to a working citizen, loans are the last thing on his mind.
“I am thinking about moving or other personal things. Paying back my student loan starting in November, I guarantee, will be the last thing I think about, ”he said.
Democratic lawmakers are urging President Biden to extend the moratorium until March 2022, citing that some lenders are not willing to resume payments from October 1, and like these providers, many college graduates and prospective alumni are also not willing to pay off their debt.
“Nobody expected a pandemic to break out when this happened and people would be fired from their jobs,” Dewan Martin said. “You start investing in these savings, and then your bills and bills keep coming in, it doesn’t matter.”
Martin says he not only hopes for an extension to March, but believes the government should re-evaluate it as each extension approaches, depending on where the economy is at the time.
“If the pandemic is still going on in March, I really think they should extend it to give everyone more time and more planning,” Martin said.
The student loan freeze applies only to federal student loans. If you have outstanding debts to private companies, you should contact them to find out what repayment options you have.