BUFFALO, NY (WKBW) — Chances are you know someone who had to take out student loans to help pay for their education. According to the Federal Reserve, the average amount of student debt a person has after a four-year degree is $28,950.
All of this contributes to more than $1.75 trillion in the country’s student loan debt.
But the White House may seek to change that. Reports are coming out that President Biden will be looking to make some announcements regarding debt relief in the United States. With the loan repayment freeze ending at the end of the month, the White House is expected to cut up to $10,000 in student loans for those who qualify.
“It would have a huge impact on the individual’s personal finances,” said Noelle Carter, president and CEO of the consumer credit counseling service.
At this time, there are no official qualifiers or eligibility announcements. The White House is expected to say that $150,000 or less in annual income will help you benefit from this financial cushion. It could really help students who are struggling to pay for other expenses.
According to Federal Student Aid, those 24 or younger owe $110 billion, so that might help. Carter said it’s very easy to spend the relief that might come from their loan cuts, but it’s important to stay diligent.
“For a newly graduated student, I would just advise him to be careful with his finances. Always be very aware of what he owes and what his monthly payments will be,” Carter said.
One of the biggest debt expenses in America comes from credit card debt. The Federal Reserve says the United States has hit an all-time high in credit card debt, hitting $930 billion. Such payments are what Carter advises people to make, if they are eligible for this relief.
“If you have high-interest credit card debt, you’re going to want to prioritize that…Often times we don’t realize how much money we’re wasting on interest payments,” Carter said.