For some borrowers, the obligation to make student loan payments ceased back in March 2020 due to the COVID-19 payment pause.
Cal Poly students are among the 43 million individuals in the United States grappling with a massive $1.6 trillion in federal student loan debt, as per the Department of Education’s estimates
The extended suspension of federal student loan repayments has resulted in a situation where nearly three graduating classes of college students, including Cal Poly students, have never experienced the responsibility of repaying their student loans. One Cal Poly student, Ryan Ocean Sherman, firmly believes that the cost of education should not be as high as it currently is, particularly for those aspiring to achieve their dreams.
Sherman, a Cal Poly student, stressed the importance of providing education at little to no cost, highlighting its crucial role in enabling success in the United States. According to the Department of Education, the monthly payment amount hinges on the repayment plan selected by the borrower. If no plan is chosen, borrowers will be automatically enrolled in the standard plan, where payments are determined by their loan balance, not their income or family size. Monthly payment amounts will be communicated to borrowers at least 30 days before the due date.
While some, like Sherman, advocate for substantial loan forgiveness, the Biden Administration has introduced the ‘Save Plan,’ an income-driven repayment initiative aimed at helping borrowers prepare for impending payments. Depending on their income, some individuals may qualify for monthly payments as low as zero.
Nathan Jaggers, another Cal Poly student, voiced concerns about the impact of resuming loan repayments, particularly in the face of rising interest rates and inflation
For borrowers seeking guidance on commencing the repayment process, resources are available through the Department of Education. According to data from the Education Data Initiative, the average federal student loan debt balance currently exceeds $37,000, underscoring the pressing need for affordable education and effective loan management for Cal Poly students and countless others across the nation.
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