ELMIRA, NY (WETM) – 40 million Americans will need to start paying down their debt.
When COVID-19 first occurred, the government suspended payments to banks and lenders due to the collapsing economy and labor market.
As the pandemic continued, people experienced more difficulties with their finances, which made it harder to pay off their student loans.
The Biden administration launched the COVID-19 emergency relief program in January 2021. This bill halted payments to help low-income citizens who were struggling during this time.
The economy is now returning to normal with the reopening of businesses. As a result, banks are now looking to collect debt that was once stopped due to the pandemic.
“Banks and the federal government need to be flexible and try to help people the best they can if they can’t find out, if they can prove they don’t have income. ‘they are unemployed, I mean I totally agree, “said Matthew Burr Elmira College professor,” I think we have to potentially be flexible and try to find opportunities to work with people and no you don’t know how to handcuff them with, you know, seven or eight percent interest rate and, you know, kill their credit and things like that that don’t help nobody in my opinion, it’s just okay harm the economy in the long run.
According to EducationData.Org, about 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 relief program will no longer be in effect. The Federal Student Aid and Loan Service will contact people directly about resuming payments.