Resumption of student loan repayments in two months; what local experts say about the situation
ROANOKE, Va. (WDBJ) – Throughout the coronavirus pandemic, payments on student loans have been suspended.
In August, the Biden administration issued a final extension to that hiatus, saying payments would resume in February.
A professor of economics at Lynchburg University says borrowers need to prepare now.
âI expect they will allow this expiration in the meantime, so by February you should be able to pay your payment. Make sure you are in good financial shape to make your payment in February, âsaid Dr. Gerald Prante.
Prante says the economy could have a major role on those who are in debt.
He says current inflation will have a different impact on people.
âIf your wages keep up with inflation, but your student loan payments are fixed, then your student loan repayment as a percentage of your income will go down,â Prante said. Those who do not have a salary increase will not benefit.
Between the economic situation and the unknowns about a new variant of the coronavirus, could there be a pardon or another extension?
WDBJ7 political analyst Dr Bob Denton says the move will have impacts on the road, especially the president.
“It’s a very strategic decision that he has to face, but at the end of the day I think he’s obligated to tackle the problem one way or another and if he doesn’t. , there will absolutely be political fallout in all areas, âDenton said.
Denton says the Millennium Voting bloc will be watching the matter closely, especially as the midterms come into play next year.
âThis is a major problem for this voting bloc and this generation in particular and therefore it is beneficial for both parties to try to resolve it. This problem is not going to go away, âDenton said.
Ultimately, the plan now is to restart payments in February.
If you don’t think you can afford the full amount, Prante recommends looking for an income-based repayment plan.
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