Biden has asked the Board of Education to keep the freeze on student loan payments until October.
MACON, Georgia – In one of his first actions as president, Joe Biden will ask the Board of Education to extend the nearly year-long hiatus on student loan payments, and for the Biden administration, that means stop student loan payments, without interest.
Payments were to resume at the end of January. Now the break is extended until September 30.
According to Wayne Johnson, who headed the Office of Federal Student Aid under former President Donald Trump, Georgians will on average be able to save around $ 4,000.
“The average payment is around $ 450 per month, but we have people who have payments up to almost $ 2,500 per month, so at this point it’s extremely important to be able to get payment relief between. $ 400 and $ 2,500 per month. Johnson said.
Dean Yusuf, a second year student at Mercer University, says saving that monthly loan payment is like a scholarship.
“I had to start looking for grant opportunities to be able to repay the loan. But with that, it’s like a scholarship for me. “
This decree not only benefits students, but also many beneficiaries of social security.
“Believe it or not, a lot of seniors have loans,” Johnson said. They have in fact taken out more parent loans to educate their children. “
It’s unclear how the Biden administration plans to handle the massive $ 1.6 trillion student debt, but Johnson said it was a good first step.
“There is so much uncertainty about what needs to be done about the broken student loan system that it is extremely important to just hit the pause button.”