The past few months have been a rollercoaster for those looking for some relief with their student loans.
In late June, the U.S. Supreme Court struck down President Biden’s student loan forgiveness program. Payments for most are set to resume within the next month. With some students facing thousands in debt, it’s a change many are unprepared for.
“Federal student loan payments will be resuming in October,” St. Norbert College Financial Aid Director Jessica Rafeld said. “So students who may have had their payments paused during the pandemic will be reentering repayment. But it also could impact students who may be entering payment for the first time.”
According to Rafeld, federal loan servicers will be communicating with students at least 21 days prior to the first due date. Still, just the thought of resuming payments so suddenly can be a cause for concern.
“I do have college loans,” UW-Oshkosh student Jayden Campbell said. “I’m just going to say it. A lot of people, lucky ones, they don’t. But for the most part I’m kind of working to pay off my own loans. I don’t really have much income to pay it off, that’s why I’m taking them. It is kind of just an out of nowhere thing.”
The plan would’ve eliminated $10,000 in loan debt for those with incomes below $125,000 a year or households that under $250,000 a year. Campbell is one of an estimated 43 million who had the benefit of the freeze.
It’s not hard to find others who are in a similar situation.
“When I graduate in December I’m gonna be, I’m gonna have to pay it back in like 10-15 years,” UW-Oshkosh student Maxwell Rinn said. “That’s something I don’t want to do because I’m going to get into an immediate profession so I really don’t want to waste my time paying back student loans.”
While many students are in favor of the idea of student loan forgiveness, it is a divided issue with some older generations feeling it’s not fair to those who’ve already paid them off or never had them to begin with.
“Being a senior, I’ve been paying for school every year and now that they’ve brought that when I’m finishing college is a little frustrating,” Post said.
In fact, a Reuters poll from April found 41% of Americans didn’t approve of Biden’s plan, compared to 47% who did. And even those who do support it see ways it could help.
“Maybe it’s for the best that they get these payments done you know,” Campbell said. “Colleges kind of need the money. You saw what happened with Oshkosh.”
Interest for loans started being collected again at the start of September.
