Baton Rouge, Los Angeles (WAFB) – Many people across Louisiana are heaving a sigh of relief, after President Biden extended a pause to pay off student loans until May 1.
Take Cinnamon Player as an example. I graduated from Northwestern State University in the fall of 2019.
“I was checking it in once a month, every now and then to see if it increased, didn’t it increase,” said Blair, a Baton Rouge resident.
Even with TOPS, she still owes more than $17,000 in student loans.
She is one of millions of college graduates who have been given a simple extension to pay their salaries.
“It gives me more time to get myself together when he starts again,” said Blair.
“Baton Rouge actually has a slightly higher student loan balance than the national average student debt,” said Amanda Bush, writer at LendingTree & Student Loan Hero.
Student Loan Hero is a company that works with people to deal with their student loan debt, and they’ve done some research on this topic.
Here are some stats from LendingTree’s student loan site, Student Loan Hero. https://studentloanhero.com/featured/louisiana-student-loans-refinance/#loan
According to research from Student Loan Hero, in Louisiana, the average balance for federal and private student loans is $33,823, 8% lower than the US average of $36,689. This puts Louisiana in the 18th place in the country for the highest student loan debt. Just over 7% of these borrowers owe $100,000 or more in student loans. In Louisiana, borrowers 25 and younger tend to have significantly lower student loan balances, with average federal debt at $14,993 and private debt at $14,013.
– According to Student Loan Hero data, in Baton Rouge, the average student loan balance is higher than the state average. The average student loan balance in Baton Rouge is $4,0305. Within the parish of East Baton Rouge, the average student loan balance is $36,989 and the average monthly payments are $276.
“So this 90-day extension really gives borrowers more time to save and plan for the suspension to be lifted,” Bush said.
But defenders like Davante Lewis of the Louisiana Budget Draft are pushing a step further.
“If we really want our economy to thrive, the way to do that is to cancel student debt,” said Lewis, director of public and European affairs for the Louisiana Budget Project.
Lewis says President Joe Biden has the executive authority to do so.
And by doing so, it will stimulate the economy even further.
“Nearly 7% of all people who owe a student loan and have debt in Louisiana are 60 and older. So this is not just for 18-24 year olds, it affects a lot of parents and grandparents, who They took out debt for their children as the cost of college increased.”
People like Player know that they will probably have to pay these loans at some point.
But she is just happy with a little rest.
“It’s good to know that I still have more time to prepare myself for this,” said Blair.
About 41 million borrowers will benefit from a student loan repayment moratorium.
These payments are due to restart in May.
Click here to report a typo.
Copyright 2021 WAFB. All rights reserved.