Managing Student Debt During the COVID-19 Pandemic
The student loan debt crisis is perhaps one of the biggest in our country and happens to be an issue that a lot of the students in our community face. Now, with the economic stress of COVID-19 and its many impacts, the financial burdens of families, especially regarding education, seem to be getting more complicated and frustrating by the day.
The pandemic is changing the landscape of student loan payment and finance for the foreseeable future. But, one of the most substantial changes to this process is in action right now, and it is important to know for those who either owe student loan debt or who currently attend college and hold government-issued loans.
Finances may seem confusing, but no worries! We’ll explain. Photo found here.
According to Student Loan Hero, the United States government is presently offering automatic interest-free forbearance on student loans. Former President Trump enacted this policy last March in the earliest days of the pandemic, and President Biden has extended protocol until Sept. 31, 2021.
This financial and student loan jargon can sound incredibly confusing, but don’t worry! This policy will relieve some of the fiscal stress looming over students in this particularly difficult time. Simply put, this action will halt any interest charges on federal student loans owned by the Department of Education and will suspend any unnecessary payments until the end of September.
These actions are monumental in limiting the costs of student loan finances for those struggling the most during the coronavirus pandemic. Not only will the freeze of interest rates allay thousands of dollars over time, but the temporary pause of all payments will be just as helpful in lessening the monthly burden of student loan debt.
If you have received student loans from resources outside of the Department of Education, there is still a possibility for financial assistance during the pandemic. Here’s what you can do to find out where you stand…
Check your state’s options: A lot of states are offering additional financial aid to student loan borrowers, especially if they owe money to the state. Here is a resource to check any options your state is offering during the pandemic regarding student loan payments.
Contact your lender or loan service: Speaking with your lender or loan servicer can help guide you through the options available to change a payment plan or the monthly costs associated with your particular student loan.
Reach out to the Elon University Bursar's office: The employees at the Bursar’s office are always willing to help students and their families with payments, especially given the uncertainties of this time. A phone call or email with their office is always appreciated.
There is also hope for additional student loan forgiveness in the future. While there has been much pushback between Congress and President Biden about a congressional student debt relief package, Biden is open to the idea of forgiving $10,000 of federal debt for student loan owners across the country, MSNBC reports.
“I’m prepared to write off the $10,000 debt, but not the $50,000,” Biden said in a CNN Town Hall Feb. 16. “Because I don’t think I have the authority to do it by signing with a pen.”
Although Biden promised that $50,000 on the campaign trail, the president feels that a policy that substantial should be signed through an executive order, but through an act of Congress. Furthermore, he believes in free community college and financially viable options for state universities to families who qualify.
While the state of student loan debt seems a little messy at the moment, there is hope for the future. Financial options that can ease the burden of debt are surfacing in the midst of the COVID-19 pandemic and most likely beyond, hopefully relieving some of the stress students and families across the country are facing alike.