38% of student loan borrowers said they were unready to resume making payments, versus only 28% who indicated they were prepared, a recent survey conducted by Student Loan Hero found.
President Joe Biden extended the lifeline the federal government has provided to most student-loan borrowers during the pandemic.The ongoing pause for federal student-loan repayments will now last until Aug. 31, instead of ending on May 1. Biden announced April 6. It was the sixth extension of the freeze on payments since the start of the pandemic, and the most last-minute extension yet, said NerdWallet student-loan expert Anna Helhoski.
The ongoing uncertainty is creating challenges for borrowers Other financial experts agreed with Helhoski’s assessment. Bankrate.com analyst Sarah Foster suggested that the Biden administration has given borrowers “some whiplash” over the past year. Last summer, the administration had initially signaled that an extension on student-loan forbearance announced in August would be the last, though that ended up not being the case.
A March survey conducted by Student Loan Hero found that 38% of these borrowers said they were unready to resume making payments, versus only 28% who indicated they were prepared. Those numbers are in line with another survey the personal-finance website conducted in July 2021. “On the other hand, some people have used the money that they would have applied to their loans to instead pay for their rent, groceries, other debt or other expenses,” Kitchen said. “And this can make sense in some situations, especially if you have higher-interest debt, such as credit cards.”
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