(FOX 9) – Hundreds of thousands of people in Minnesota have student loan debt with the university, and the news that President Biden’s administration plans to extend the student loan moratorium until August 31 is probably a relief.
“We think this will really help all Minnesotans who currently have federal student debt,” Dennis Olson, commissioner of Minnesota’s Office of Higher Education told FOX 9.
Amid rising inflation, Olson says it’s easy to see why payments should be delayed.
Loan repayments were originally scheduled to resume on May 1 – after being repeatedly halted throughout the pandemic.
“I think it’s a way for students to have one less financial worry as they strive to align all of their other necessary expenses, responsibilities, and obligations,” Olson said.
Loan repayments were originally scheduled to resume on May 1 after being halted several times throughout the pandemic, but have now been extended until August 31 – a move that will affect many Minnesotans.
Data from the nonprofit Student Borrower Protection Center shows there are 775,000 people in the state with student loans — with an average debt of 37,500 per borrower.
“We want students to fully understand the debt they’re holding and to be able to understand all of the options available to them,” Olson said.
Olson says he knows there will come a day when payments have to start again.
It encourages borrowers to keep an eye on their loan officer’s information and explore income-driven repayment plans.
The US Department of Education can also help you understand the type of loan you have and the options for refinancing.