JONESBORO, Ark. (KAIT) – Extension granted, but it could come at a price.
Millions of people with loans have more time before they have to pay.
The Biden administration has extended a hiatus on federal student loan payments until May 1.
Gary Latanich, former professor of economics at Arkansas State University, said the situation was very complex.
“So that’s a temporary solution for now, until they find a real solution,” he said.
Each person with student loan debt has an average of $ 39,000 to repay, according to Education Data.
Latanich said some are calling for wiping off student loan debt altogether, but it won’t be that easy.
“It’s more complicated than you think … Because if I get rid of all the student loans.” What about next year students, next year, next year, ”he said.
I asked how this break might affect the future of borrowers.
Brittany Cesean has almost completed her Masters.
She said total debt cancellation would be life changing.
“I will be able to use this money for my life, my future husband, my future children, my future home,” she said.
Latanich explained that those goals could be delayed if they continued to withhold payments and then bring them back later.
“Now you owe us $ 500 a month, okay. Is this going to be a big hit on your income? Yes. Could it delay, have a baby, buy a new house, buy a new car, yes, ”he said.
Between 2010 and 2020, tuition fees increased by an average of $ 7,000.
Lantanich said slowing this increase could help reduce student debt.
“It would be nice if the government would try to help student loans confront the education industry and say listen, guys. There must be some constraint on these rising tuition fees, ”he said.
He said if the increase in tuition fees slowed or stopped, many people would not be in so much debt.
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