The Department of Education estimates 43 million people in the United States owe a collective $1.6 trillion in federal student loan debt.
Some borrowers have not made a student loan payment since March of 2020.
Federal student loan repayments are resuming in October for many borrowers after the Covid-19 payment pause.
Federal student loan repayments have been paused for so long in the United States that there are nearly three graduating classes of college students who have never had to pay for student loans.
Cal Poly student Ryan Ocean Sherman believes that education should not cost what it does for many students hoping to accomplish their dreams.
A lot of people my age would agree with me that education is something that needs to be provided at little to no cost because its something so genuinely important for someone to make it in this country, said Ryan Ocean Sherman, a Cal Poly SLO student.
The Department of Education states that the monthly payment amount depends on what repayment plan a borrower will choose.
If a plan is not selected, borrowers will be enrolled in the standard plan by their service loan officer, where payments are based on their balance size and not their income and family size.
Borrowers will receive their monthly payment amount at least 30 days before their first payment is due.
Not everyone feels the repayments should be starting.
I think it’s vital that a lot of these loans should be forgiven, like a lot, and if not, then all of them. Thats my personal belief, said Sherman. I don’t know if other people agree with me on that but in my generation, it seems to believe that we are moving toward that perspective.
The Biden Administration has also rolled out the Save Plan.
It’s a new income-driven repayment plan to help borrowers plan for upcoming payments.
Some people may be able to cut their monthly payments to zero based on their income.
It does affect the people that do have to start worrying about repaying loans and stuff especially with interest rates going up substantially. A lot of inflation, said Nathan Jaggers, A Cal Poly SLO student. Im sure it just makes a hard situation tougher than having to worry about loan repayments coming back up.
If youre a borrower who needs more information on how to begin repaying your federal student loans, click here.
According to the Education Data Initiative, the average federal student loan debt balance is over $37,000.