Student loan delay could impact northern graduates
CLEMSON, SC (WSPA) – It didn’t take long for the Biden administration to act quickly after taking the oath on Wednesday.
Several new decrees have been put in place, including a request for postponement of student loan repayments.
Graduates like Amy McKenna, who just graduated from college, have entered the real world with many financial question marks amid the pandemic.
“We save for cars, we save for apartments, we save for whatever you can,” McKenna said.
Adding: “Many students or recent graduates have not yet been able to get a job to be able to still pay their student loans.”
In response to this problem, the congress last March put a hiatus on student loans as part of the Covid relief program.
Now that President Biden has taken office, that relief could last longer than people thought.
On Wednesday, a new decree asks the education department to extend the break at least until September 30.
Director of Investments at Carolina’s Wealth Management, Karyn Cavanaugh says that such a delay can make it look like debt is gone, but students should always have their loans in mind when making financial decisions.
“The best thing to do is act like ok, I know I have to pay next month even if you don’t have to pay next month and start paying yourself before you start paying for other things”, Cavanaugh said. “So when October rolls around, it’s not the rude awakening where you say oh my God I’m not prepared for this.”
Adding that in the meantime, there are things graduates can do outside of college to ease the burden of upcoming loans.
“The jobs that students would normally get, a lot of those jobs aren’t available,” Cavanaugh said. “As easy to get a job as you would have thought, unemployment is still very high, unemployment levels are high, so I would say see where you can find work in parallel.”
President Biden’s order does not include debt cancellation, according to an Associated Press report.
It is a decision he says he wants to go through Congress.