FORT WAYNE, Ind. (WANE) – Federal student loan payments have been extended again. The student loan freeze is now extended until January 31, 2022.
“This extension gives borrowers 22 months into the duration of a payment interruption,” said Andrew Pentis, student loans advisor. “One thing to note from the Department of Education, they call this the latest expansion.”
Pentis is a Certified Student Loan Advisor and Senior Writer for Student loan hero by Loan tree. Her job is to help students and their families find the best ways to pay for their education or to pay off their university debt.
According to a recent study per Lending Tree, the current total of US student debt is $ 1.58 trillion. The study then showed that Indiana was ranked 11th in the country for the state most interested in canceling student loans, the average Hoosier owning over $ 30,000.
As of March 2020, federal student loans have been in a forbearance period which allows those with loans to temporarily stop paying. The abstention that was supposed to end in October will now end in January 2022.
But what happened to the cancellation of the student loan?
President Joe Biden has spoken of eliminating student loans ever since, forgiving $ 10,000 in federal student debt for each person. So far, no bill has been adopted and no decree has been signed. Pentis says borrowers shouldn’t expect a student loan forgiveness anytime soon.
“We are at a standstill,” Pentis said. “We don’t know what the next steps are. Granted, in the state of Indiana, the average monthly payment is still over $ 250, which can wreak havoc on families. Forgiveness is something that many people expect.
Pentis says that before payments are restarted, borrowers should have plans in place to resume their payments. He also says a wider conversation needs to be conducted to educate students before they incur massive debt.
“This is what an interest loan is, this is what a loan really is, this is how to understand your repayment,” Pentis said. “With this information, I hope these students and their families will decide that you know what I don’t need to attend fancy four-year private universities on the other coast, maybe I’ll stick with my community college for the first two years and then reassess.
While student loans aren’t going away anytime soon, Biden is considering regularity reforms for existing student loan repayments. The idea would be to write off civil servants’ student debt on an annual basis instead of making them wait long.
This type of student loan forgiveness would be part of the public service loan forgiveness program. This program helps nurse educators and other public officials. However, it is your employer who must be eligible for the program, not the student loan borrower.