Managing University Debt After Loan Cancellation is Lifted
MILWAUKEE – While the coronavirus pandemic has allowed some to cancel student loans, reality will soon set in as many students attempt to manage college debt. Finances are affected, and there are ways to bounce back and save.
With graduation and the excitement of success, sometimes comes a worry about the future.
“Unfortunately, the student debt crisis actively prevents them from doing so, prevents them from building long-term wealth, but also prevents them from spending money on things they love,” said Tori Dunlap, Silver Educator.
Dunlap said the pandemic is forcing students to proceed with financial prudence and face a balancing act.
“Unfortunately, a lot of people who ended up battling a pandemic were probably struggling before, so they weren’t able to repay their student loans,” she said. “They may not have been able to take advantage of this time. It’s a bigger issue just around the student debt crisis – $ 1.7 trillion for recent graduates.”
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She said it was an average payment of almost $ 400 per month, which leaves a lot of people spending the summer trying to figure out how to reach their financial goals.
“It depends on an individual, depends on private schools versus public schools,” Dunlap said. “Unfortunately, women bear the brunt of student debt. Women bear two-thirds of student debt in the United States, which is the biggest systemic problem around education, around accessibility.”
She suggests spending conscientiously and managing money responsibly, as interest can add up quickly.
“In addition to your monthly payment, you want to send any extra money you have available for principal,” Dunlap said. “That’s the original amount they took out as part of your student loan. Contributing to the extra money you have, even if it’s $ 50, pouring it into the principal – can help you get out of debt much faster ”.