.png)
Here on the blog, we like to dish out helpful facts and tidbits about the college planning process. We work hand in hand with parents and students of Western New York to help get the most out of the financial aid process. We talk a lot about federal and state financial aid, tutoring and exam prep, and student loans. If you ever have a question about the college planning process, please DM us or reach out via our contact form to let us know and we would be happy to expand on your question!
Jeff Boron recently met with Tom Puckett on WBEN 930 here in Buffalo NY to talk about the return to student loans, if and when that happens. We will summarize here, but you can see more over at WBEN's website!
"Freeze on Student Loans is Thawing"
As of November 7 when Jeff appeared on the show with Tom, Jeff stated that he could foresee loan payments returning to borrowers' lives as early as February. Back in March 2020, during the enactment of the CARES Act, lawmakers put an essential freeze on federal student loan collection and payments. Some think that the new variant of COVID may lead to this date being extended once again,
Rude Awakening
The pandemic has not been easy to overcome by any means, and unfortunately for borrowers, this will be another rude awakening. The payments that once crippled college graduates' budgets will once again be brought into the equation, and it's better to be prepared.
Pay What You Can
Boron's advice for anyone who borrows is to be at least making interest payments if possible.
"If the student's able to, they should at least be making payments, at least interest payments, because when we do these programs, we're kicking the can down the road." He says the loans don't go away just because the payments aren't immediately due. "I advise them to continue making payments because all these programs, when you defer, you're paying more in interest payments."
What's Next for Student Loan Forgiveness?
Boron speaks about what he can foresee when it comes to the hot topic of student loan forgiveness. Many on both sides of the political aisle have talked about the nuances of student loan forgiveness, but Boron is quick to note, don't hold your horses.
"That will be on federal loans, not private loans you took out from banks or credit unions. I think they're looking for some points, especially with the younger generation,"
Hear the whole piece below!
Remember if you are ever looking for more information on financial planning for college, or you just have a question about your student loan repayment, Jeff is only one call away. He is a certified college planner who can help anyone with a question about college financial planning. Stay tuned on Facebook and remember to subscribe to the SYKTC pocast!
Comentarios