90% Of Student Loan Borrowers Aren’t Ready To Pay Student Loans Again

President Joe Biden (Photo by Drew Angerer / Getty Images)

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90% of state student borrowers say they will not be ready to pay student loans as of October 1.

Here’s what you need to know.

Student Loans

A new survey of 23,845 federal student loan borrowers shows that 90% will not be willing to pay student loans if the Covid-19 pandemic student loan relief ends on September 30, 2021, pleading for President Joe Biden after the Covid-19 pandemic extends student loan relief. According to the survey:

• No payments for student loans: 90% of student loan borrowers are unwilling to start paying student loans again on October 1, 2021.
• Delay until September 2022: 65% of student loan borrowers say they will not be ready to make payments on student loans by September 2022 or do not know when they will be ready.
• Covid-19 stimulus: 80% of student loan borrowers say they currently rely on Covid-19 relief for federal student loans.
• Payment break for student loans: 75% of student loan borrowers report that the pause in payment is essential to their “financial well-being”.
• Student Loan Payments: Almosgt 33% of student loan borrowers say that more than a quarter of their income will be used to pay back the student loan if the student loan payments are due after October 1st.
• Financial burden: Prior to the Covid-19 pandemic, 26% of student loan borrowers rated their financial health as “bad” or “very bad”. Today it’s 43%.

According to the survey results, the Covid-19 pandemic is also a story of racial differences, particularly when it comes to student loans: “Blacks, Latinx and Native Americans with student loan debt faced major economic obstacles during the pandemic and are least likely to say that ready to resume payments on their federal student loan … 94% of black borrowers do not feel financially secure enough to resume state student loan payments in October 2021 … 45% of Latinx borrowers rate theirs current financial situation as bad or very bad, compared to 28% who rated their well-being equally before the pandemic. “

Biden can extend the student loan suspension, but there is no guarantee

While Biden has canceled $ 3 billion in student loans since taking office as president, there is no guarantee that Biden will extend the temporary deferral on student loans. Under the Cares Act – the $ 2.2 trillion stimulus package – Congress provided several types of student loan relief through September 30, 2020:

• Break in federal student loan payments;
• temporary 0% interest rate setting for federal student loans; and
• Halting the collection of delinquent federal debt for student loans.

President Donald Trump extended this student loan relief for four months to January 31, 2021. Then Biden extended this student loan relief by eight months to September 30, 2021. Biden also extended the student loan relief to 1.1 million student loan borrowers with FFELP loans that are not included in the Care Act. By September 30, 2021, the U.S. Department of Education estimates that student loan borrowers will cancel more than $ 90 billion in student loans during the Covid-19 pandemic.

Senators: Postpone student loan payments until March 2022

This week, more than 60 US Senators wrote to Biden to extend the student loan facility beyond September 30th. Preferably, they ask Biden to extend the student loan facility until at least March 2022. They say at least 4 bad things will happen if the student loans are not suspended and student loan borrowers must start paying student loans on October 1st. In addition to the ongoing financial troubles due to the Covid-19 pandemic, the senators say student loan service providers – who they say failed student loan borrowers during the Covid-19 pandemic – are ill-prepared to make payments for Process student loans and enroll borrowers in income-oriented repayment plans. US Secretary of Education Miguel Cardona said in a testimony in Congress last week that discussions were underway over a possible extension of the student loan facility.

If you have student loans, make sure you have a game plan for your student loans. Student loans may not be paused and the student loan cannot be canceled. Here are some smart options to consider to save money:

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source https://collegeeducationnewsllc.com/90-of-student-loan-borrowers-arent-ready-to-pay-student-loans-again/