Ohios in student loan debt must make a decision

Illustration: Aida Amer/Axios

Americans were originally scheduled to start paying off their student loans today after nearly two years of suspended payments and 0% interest rates.

  • Instead, borrowers are still hanging around in repayment purgatory.

Why is this important: 43 million Americans have student debt. Totaling $1.75 trillion nationally, it is second only to mortgages.

Catch up fast: President Biden announced in December that payments would not resume until May 1, extending the 2020 pause for a fifth time at the start of the surge in the Omicron variant.

  • And this despite the fact that the previous moratorium was originally called a “final extension”.

And now ?

💭 Our opinion: Of course, now is a good time to pay off high-interest debt that isn’t on hold, like private student loans or credit cards.

  • But if student loans are your major and imminent financial burden, it’s easy to feel torn between two uncertain options.

🤔 Do you snack to them while interest rates are suspended to make a big dent and risk spending money you could have saved or invested?

  • Or do you build your savings and cling to the hope of student loan forgiveness, like the $10,000 Biden offered on the campaign trail?

📬 We are curious: What is your point of view ? E-mail [email protected] and let us know if you’re stressed too.

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