Updated: Jan 23
Student loan debts are a huge burden for borrowers and for the economy.
It's crippling just to see how much debt is currently owed.
Here, take a look:
Yikes! So $1.57 trillion looks pretty tiny when shown like that so here's a better visualization:
I don't know about you but to me - that's a huge problem. Education is costly and with an outstanding debt that high, it makes you wonder -- What is the real cost of education?
The Good News:
As a measure of relief to borrowers President Biden recently issued an executive order announcing that the current freeze on federal student loan payments, interest, and collections would be extended to September 30, 2021.
Borrowers who are on track for student loan forgiveness will receive credit during the suspension period as though they made on-time payments in the correct amount.
Following the freeze extension, Rep. Alexandria Ocasio-Cortez called on President Biden to bypass Congress and cancel billions of dollars in student loan debt.
The Bad News:
🥶 While federal student loans will remain frozen, the freeze does not extend to commercially issued FFEL-program loans, or to private student loans. This freeze will exclude more than 7 million borrowers whose federal loans are held by private companies or universities.
According to MeasureOne, Private student loans make up 7.87% of the outstanding U.S. student loans. The total outstanding private student loan debt is $131.81 billion.
The Ugly Truth:
The digital economy has exploded allowing creators to make multiple streams of income just from leveraging their skillset and the internet. It makes you wonder: Is college really worth the debt?
Although this freeze on student loan repayment is a great first step, it's only a short-term solution. As a nation, we need to start thinking long-term and push for a future that doesn't cripple students that pursue an education.
A future where our education system actively teaches students financial wellness education, mental health awareness, and the psychology behind all their decisions.
That's the kind of future our team at Chromabill is fighting to make a reality.