President Biden to halt federal student loan payments through August

Financial advisors say students and alumni should put money aside each month if they are paying a loan. That will prepare them better financially when the payments start again.

News 12 Staff

Apr 5, 2022, 9:58 PM

Updated 748 days ago

Share:

College students and alumni are getting another reprieve as President Joe Biden plans to freeze federal student loan payments through Aug. 31.
Student loan payments were scheduled to resume May 1 after being halted since early in the pandemic.
According to the Education Department, 43 million people owe a combined $1.6 trillion in student debt.
"It's definitely helpful to not have to worry about an extra payment month to month," says NYU graduate Alfred Ragone.
Some congressional Democrats have pressed Biden to use executive action to cancel $50,000 for all student loan borrowers, saying it would jump-start the economy
"Biden is maybe leaning more towards forgiving up to $10,000 in student loan debt and others like Chuck Schumer are pushing for $50,000," says Mitchell Goldberg, a financial advisor for ClientFirst Strategy. "Where that falls - probably in the lower end, if at all."
Financial advisors say students and alumni should put money aside each month if they are paying a loan. That will prepare them better financially when the payments start again.
Interest rates would remain at 0% when student loan payments resume, according to the plan.


More from News 12
1:57
3 families displaced by fast-moving fire at North Amityville home

3 families displaced by fast-moving fire at North Amityville home

2:02
Sunny and mild Tuesday before rain returns Wednesday

Sunny and mild Tuesday before rain returns Wednesday

2:53
Sachem schools consider staffing and program cuts, piercing tax cap as budget vote looms

Sachem schools consider staffing and program cuts, piercing tax cap as budget vote looms

DA: Syosset man pleads guilty in DWI crash that killed married couple in Laurel Hollow

DA: Syosset man pleads guilty in DWI crash that killed married couple in Laurel Hollow

0:29
Jericho named Long Island's top rated high school by U.S. News and World Report

Jericho named Long Island's top rated high school by U.S. News and World Report

0:51
NCC working with food truck vendors to provide food for rest of semester

NCC working with food truck vendors to provide food for rest of semester

0:26
USDA warns of ground beef that may be contaminated with E.coli

USDA warns of ground beef that may be contaminated with E.coli

Is your mom awesome? Long Island tell us why your Mom Rocks!

Is your mom awesome? Long Island tell us why your Mom Rocks!

1:42
Made on Long Island: Nicolock Paving Stones in Lindenhurst

Made on Long Island: Nicolock Paving Stones in Lindenhurst

0:48
9 steps to take if your ‘fur-ever’ friend goes missing

9 steps to take if your ‘fur-ever’ friend goes missing

0:51
State police: Trooper struck in the face by combative driver during Southern State Parkway traffic stop

State police: Trooper struck in the face by combative driver during Southern State Parkway traffic stop

1:54
Ronkonkoma woman pleads not guilty to 49 counts of animal cruelty

Ronkonkoma woman pleads not guilty to 49 counts of animal cruelty

1:33
Hampton Bays woman retrieves phone, wallet she accidently dumped into recycling bin nearly 3 weeks ago

Hampton Bays woman retrieves phone, wallet she accidently dumped into recycling bin nearly 3 weeks ago

1:55
Long Islanders taught about dangers of toxic pollutants in drinking water

Long Islanders taught about dangers of toxic pollutants in drinking water

0:16
Police: Long Beach man punched nurse in abdomen at Mount Sinai South Nassau Hospital

Police: Long Beach man punched nurse in abdomen at Mount Sinai South Nassau Hospital

1:59
Long Island gets introduced to matzah pizza; proceeds will go toward charities

Long Island gets introduced to matzah pizza; proceeds will go toward charities

0:32
Spartans chosen as new mascot for Brentwood school district

Spartans chosen as new mascot for Brentwood school district

0:19
Police: 2 people hospitalized following Lawrence crash

Police: 2 people hospitalized following Lawrence crash

2:12
Amityville schools to receive $2 million from new state budget to help reduce budget deficit, save jobs

Amityville schools to receive $2 million from new state budget to help reduce budget deficit, save jobs

0:17
Man wanted for stealing $1,000 in merchandise from Centereach store

Man wanted for stealing $1,000 in merchandise from Centereach store