When young consumers cannot afford to spend money on things like houses, cars, appliances, eating at restaurants, and other things because of their student loan payments, the entire economy suffers. Quite a few Americans in their twenties, thirties, and even forties pay hundreds of dollars every month in student loan payments with many years of payments ahead of them.
Some people put their lives on hold, waiting to get married, have children, move out of their parents’ homes, and live independently until they pay off their student loans. A Georgia bankruptcy attorney can help you understand how this presidential election may affect your student loan debt.
How the Coronavirus Situation Helped People with Student Loans
Congress and the Trump administration put in place a temporary freeze on interest charges on student loans because of the COVID-19 pandemic. Also, borrowers got a break from having to make their monthly student loan payments.
These measures helped people who lost their jobs due to the public health crisis by pausing collection and enforcement actions if they did not make their student loan payments. Many people struggled to keep a roof over their heads and food on the table during the worst months of the pandemic.
Those who could afford to make their monthly payments got a benefit from these measures because, with a freeze on interest, borrowers could reduce the amount of principal quicker. If they continued to make their regular payments, those monthly amounts would go directly against the balance instead of paying the principal and interest.
Depending on who gets elected and which reforms Congress approves, the future of student loan debt in America could improve. You might want to talk with a Georgia bankruptcy attorney about how to get out from under crushing student loan debt.
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