COVID-19 emergency aid ends soon and student loan repayments begin
ELMIRA, NY (WETM) – 40 million Americans will have to start paying down their debt.
When COVID-19 first hit, the government suspended payments to banks and lenders due to the collapsing economy and labor market.
As the pandemic continued, people experienced more and more financial hardship, which made it harder to repay their student loans.
The Biden administration launched the COVID-19 emergency relief program in January 2021. This bill ended payments to help low-income citizens struggling during this time.
The economy is now returning to normal with businesses reopening. As a result, banks are now looking to recover debt that had been halted due to the pandemic.
“The banks and the feds have to be flexible and try to help people the best they can if they can’t, you know, if they can prove they don’t have an income s ‘they’re unemployed, I mean I totally agree,’ said Matthew Burr Elmira College professor, ‘I think we potentially have to be flexible and try to find opportunities to work with people and no, you know, not handcuffing them with, you know, a seven or eight percent interest rate and, you know, killing their credit and things like that that don’t serve my purpose at all. opinion for anyone, it will just hurt the economy in the long run.
According to EducationData.Org, approximately 42.9 million Americans with federal student loan debt each owe an average of $36,406 for their federal loans.
As of September 31, 2021, the COVID Emergency Assistance Program will no longer be in effect. Federal Student Aid and Loans will contact individuals directly about resuming payments.