A new NerdWallet survey has found that multiple generations will feel the brunt of student debt when the payments hiatus ends in January.
Gabriella Pulice is in her final semester at Farmingdale State College. This means that she will have to start paying off her student loan soon, and right now she does not know where this money will come from.
“When you leave high school, you don’t really know the consequences of all these loans,” says Pulice. “And there’s really nothing you can do after you graduate. You’re supposed to pay them back.”
The current pause in student loan payments due to the pandemic will end on January 31.
Jonathan Goldberg is still taking classes at Farmingdale State College, but he’s already thinking about how he will repay his loans after graduation.
“You have to be aware of the money you are willing to borrow and the rates at which you accept it,” says Goldberg. “So you just need to be future-oriented.”
According to NerdWallet, 34% of parents who have borrowed for their child’s education say they’re not sure they can start making payments right away. He also revealed that 28% say they are counting on their student loan cancellation.
Financial planner Mitchell Goldberg says parents are putting their own retirement at risk by taking out loans for their children that they cannot afford.
“Keep in touch with your lender,” Goldberg says. “Let them know about your situation. There are going to be and there are programs where you can get a longer forbearance period.
Some Farmingdale students say they are hoping the federal government will give them a break.
Senator Elizabeth Warren is working to write off up to $ 50,000 in student loan debt for individual borrowers. Experts say with the Biden administration trying to push through a $ 3.5 trillion infrastructure package, the student loan cancellation may be on the back burner.