End of moratorium on student loans and resumption of full payments
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Experts say there is a chance President-elect Joe Biden will extend moratorium or enact some form of student loan cancellation
CHARLOTTE, North Carolina – After months of exempting student loan payments and free interest amid the pandemic, thousands of people may now have to prepare to start paying again once the moratorium on student loans are expected to end in January. 31.
The moratorium was first enacted by the federal government in the spring as part of the CARES Act and has proven to be useful to many.
“It’s a heavy burden for a lot of people and with the economic displacement underway, it makes the situation even worse,” said Michel Kitchen of Student Loan Hero.
Once the deadline is reached at the end of the month, Kitchen says the assumption is that President-elect Joe Biden can extend the deadline once again.
“How much, how far into the future and will there be other relief measures that remain a question,” Kitchen said.
In a recent poll by Student loan hero more than half of people said they did not feel ready to start repayments. In North Carolina, the average student loan debt is around $ 35,000. It is the 14th highest in the country.
WHERE IS THE MONEY? WCNC Charlotte Resource Center
“North Carolina is renowned for having a lot of well-known, high-ranking universities, but at the same time, it doesn’t necessarily rank that high in terms of income,” Kitchen said.
There have also been political discussions about doing more than just a moratorium to help pay off student debt.
“Joe Biden has expressed his support for a roughly $ 10,000 federal student loan forgiveness,” Kitchen said.
Despite the moratorium, experts say at least 40% of borrowers have continued to pay off their student loans due to the lack of interest. For those who are still struggling to make their payments if or when payment resumes, asking for an income-driven repayment plan can help make your student loan debt more manageable.
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