Student Loan Payments Revving Back Up

As W.H.O. declares the COVID pandemic over, it is hard to believe that it went on for over three years. Similarly, it is hard to believe that student loan payments have been halted for almost the same amount of time. The payment pause has been extended eight times and recently, the Education Secretary, Miguel Cardona, announced it would finally end 60 days after the Supreme Court ruling on the student loan forgiveness program or 60 days after June 30, whichever occurs first.

The proposed plan that was argued in front of the Supreme Court would wipe out up to $20,000 of debt per borrower. This amount would eliminate debt for an estimated 20 million out of 43 million people who have federal student loans. MSN. Whether or not the court decides to uphold or block the program, the Department of Education expects borrowers to begin paying their loans again. MSN.

With interest rates slowly increasing and the cost of tuition also on the rise, many people nowadays feel that a degree is no longer worth the cost; instead looking to go into trade schools or start up their own businesses. According to Martin Lewis, in an interview with The Guardian, “Many university-leavers will end up repaying more than double what they do under the current conditions. In practice, the majority of graduates will be paying their student loans for most of their working lives.”

For more information, please reach out to the Professionals at The Center for Financial, Legal, & Tax Planning Inc., at (618) 997-3436