CHAMPAIGN, Ill. (WCIA)—The pandemic has made it difficult for some people to make student loan payments. Financial experts have suggestions on how you can pay off the debt.
Last year federal student loan debt hit an all time high. The Federal Reserve Bank of New York said more than 40 million people in the country owe around 1.6 trillion dollars. A group of attorneys general sent a letter to Congress asking for them to forgive up to $50,000 in debt for every student borrower.
However, finanacial advisors are urging borrowers not to depend on forgiveness in order to become debt free. Have a plan for repayment.
“We would recommend engaging a planner to look at their complete financial picture, what cash flow they can dedicate towards debt pay down on their student loans, what they need to live, and what payment plan is going to work best with that,” said Caleb Smoes with Lifewise Wealth Advisors.
President Biden said he would not consider canceling up to $50,000 of debt, but he did say he was prepared to cancel $10,000. To help borrowers, President Biden extended the suspension of federal student loan payments and interest.