WASHINGTON, DC – Miriam Stoll is well educated. He holds bachelor’s and master’s degrees and a doctorate.
But with all these degrees, she also has a student loan debt of $ 500,000.
Before the pandemic, her payments were about $ 1,500 a month. Stoll said it was a relief for him when former President Donald Trump paused.
“Additional money that I did not invest in [private] the loan I was able to invest in other things. Or even just savings, ”Stoll said.
But as the end of the moratorium approaches October, some Democrats sent a letter to President Joe Biden, urging him to extend the pause.
“It takes more time to prevent 40 million people from plunging back into chaos and a truly broken system,” said Seth Frothman, executive director of the Student Borrower Protection Center. The Center is a non-profit organization dedicated to student debt relief.
Frotman said the reason for the extension is not necessarily related to COVID-19.
Instead, he said the extra time would allow Biden to make the promised structural changes to the student loan system.
“October is very soon and I’m just very concerned that it’s hard to see these promises being fulfilled until people start getting these bills every month,” he said.
He said the challenges that need to be addressed are enormous, from a lack of oversight of the student loan system to borrowers being denied available loan assistance programs to borrowers getting misinformed by private lending companies.
“I think the loan forgiveness program could be simpler,” Stoll said.
Stoll works for the government and participates in a loan relief program, which means that after 10 years of repayment to her, the remaining federal loan will be canceled.
“There are tons of programs that people just don’t know about,” Stoll said.
Stoll said that if the hiatus continues, she can focus on other expenses while funding her bank account.
“My partner and I recently bought a house, so there are things I could invest this money in. On the other hand, I understand very well that I took this money and I have to return it, ”Stoll said.