News10NBC has heard from some current students and a financial expert who has some important tips to share.
When it comes to federal student loans, President Joe Biden said the financial recovery from the pandemic will take longer than getting jobs back. He was thinking of those students buried in debt.
Local students like Taylor Wheatley, who teaches at Monroe Community College, are happy to hear the news about the May 1 moratorium.
“I feel deferring those loans is a good decision, because a lot of students are out of work, and they’re still trying to figure out their financial situation. So I think loans should be the least of our worries at the moment,” Wheatley said.
During the moratorium, interest rates will remain at zero percent, and debt collection efforts are still on hold. College students will see some extra cash in their pockets.
“It’s Christmas time, it’s the holiday season, so there’s a sense that you want to be able to buy gifts for your family,” Wheatley said.
Josiah is studying at Nazareth College. He said he wishes President Biden would stick to his campaign promise to cancel up to $10,000 in federal student debt for all borrowers.
“It kind of pushed it away which I mean is cool, but if we’re going to base our campaign on a large part of it being the cancellation of my student debt loan, let’s try to cancel it rather than give it back five months,” he said.
Brighton Securities’ chairman, George Conboye, said a deferral or pause is not a loan forgiveness. This will eventually end. Share this financial tip on what to do with those extra dollars.
“Put in a savings account, or other types of accumulation accounts where you can save that money to either pay off that amount or pay off some other debt,” Conboy said. “That way you’ll pay yourself first and you’ll be better off.”
Conboye said taxpayers would be in trouble because of the zero percent interest being exempted. We’ll see that either in higher taxes, or in higher deficits.