NASHVILLE, Tenn. (WTVF) – While many are celebrating the Biden administration’s decision to forgive up to $10,000 in federal student loan debt for most borrowers, most Tennessees who have student loans still have plenty more to repay.
“I think that’s the question everyone is asking: am I holding on, am I waiting for the government to write off even more debt?” said financial adviser Carson Odom of David Adams Wealth Group.
The Biden administration announced Wednesday that it is also extending the pause on student loan repayments through the end of the year.
But financial advisers said if the graduates hadn’t paid off their debt, now was a good time to start. This would help eliminate the principal, which means you’ll pay less interest in the long run.
“Work up,” Odom said. “Start by paying $50 and stop some of the expenses you’ve incorporated over the years, then $100 the next month, then $150, work your way up to prepare.”
Advisers say it’s not a good idea to suspend loan repayments, assuming the government will write off more debt. After all, advisers say, today’s decision doesn’t just make the money disappear. They say this decision, and any future decisions on student loans, will have impacts on inflation and tax rates that everyone will end up paying.
“Every check that the government writes comes from somewhere, it comes from somebody’s pocket, and that pocket is the taxpayers,” Odom said.