Student loan pause to be extended, offering relief to graduates – NBC Boston

The Biden administration is expected to extend its pause on federal student loan payments through the end of August, according to sources familiar with White House decision-making.

This will be the sixth time the government has extended this break.

“Things are going well so far, [but] financially not so well,” admitted Alyssa Rodriguez.

Rodriguez is a biology major completing her second semester at Suffolk University in Boston. She is seeking a second unsubsidized federal student loan of $10,000.

“It’s a lot of pressure on me because, you know, I have to find a good-paying job that’s going to help me through these years,” she said.

For nearly two years, subsidized and unsubsidized loan repayments were halted during the pandemic.

This means that Rodriguez hasn’t accrued any interest on his loans so far.

The White House should now push back that deadline for another four months to help those who are already in debt.

“If it were to drag on until I graduate, then yeah, I’d love it, but I guess we’ll see,” freshman Arthur Almeda said.

The 18-year-old, a business economics student at Suffolk University, felt pressured to get a student loan to help his parents pay school fees.

“My parents both have two jobs – sometimes three – and my older sister just went to university, so they have to pay for our two universities, so they can’t do it like that. So we had to contract a loan,” he added. said Almeda.

If the Biden administration goes ahead with the extension, borrowers will not be asked to make student loan payments until August 31 and interest will remain at zero percent.

But continuing the pause means the government is losing billions in revenue.

“The government doesn’t earn that money, does it? It earns no interest on that debt and it sits there,” noted Nicole Morong, certified financial planner at Peterkin Financial.

Meanwhile, the moratorium has relieved millions of debt-ridden Americans.

“It doesn’t matter who you talk to, having extra cash to pay off debt faster or to be able to meet their other financial goals has been really helpful,” Morong said.

An estimated 43 million Americans owe about $1.6 trillion in student debt.

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