FORT WAYNE, Ind. (WANE) – With President Biden extending the pandemic moratorium on federal loans until August 31, how should those footing the bill respond to this extension?
Ron Herrell, the director of financial aid at Purdue Fort Wayne says that those who are able to put money towards loans now, do it.
Interest continues to not accrue for the next three months while the moratorium is still active. In fact, interest has not been accruing for the last two years so any money that can go towards principal helps.
Since there are no payments due at this time, those paying on loans can put whatever funds they have available, whether that be $50, $5, or $500. Herrell says that way people can get themselves in a better financial standing.
“Do I know where we’re going in the future with loans? No. It’s really uncertain with this administration and where future administrations will go with the student loan debt. Do I think all loans are going to be forgiven? From what I’m seeing I doubt it but I can’t make any guarantees,” Herrell says.
Come September, Herrell says to be prepared.
“I wouldn’t expect it to happen again, I’d be prepared to start making payments again. I was actually very surprised that this one came, I thought the last one would be the last one. I would be prepared September 1 to start making payments again whatever that does look like,” Herrell says.