A version of this article was originally published by our colleagues at Goldman Sachs Ayco Personal Financial Management.
On August 24, President Biden announced a monumental step in student loan forgiveness.
If you’ve got federal student loan debt, you’re not alone: 45 million Americans do. While the pause on repayment has offered some breathing room, borrowers are awaiting specifics on the president’s student debt relief plan.
Here’s what we know so far:
For many of us, student loan payments can be a significant bill to pay each month. The average monthly student loan payment is about $460 according to the Education Data Initiative, a research organization that collects data and statistics about the US education system.
While the loan forgiveness plan and pause on repayment will be helpful for many, it’s important to keep in mind that loan payments will resume for many borrowers down the road.
Here are a few tips to help you prepare.
Bottom line? Exploring all of your options and making sound decisions about student loan debt can make a big difference over the life of a student loan. You made an investment in yourself with your education. Now make sure you have a plan in place to pay back your loans.
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