Feb 1, 2022 - News

Ohioans with student loan debt face a decision

Illustration of a large pile of money with a graduation cap on top.

Illustration: Aïda Amer/Axios

Americans were originally scheduled to begin repaying their student loans today after nearly two years of paused payments and 0% interest rates.

  • Instead, borrowers are still lingering in repayment purgatory.

Why it matters: 43 million Americans have student debt. Totaling $1.75 trillion nationwide, it's only surpassed by mortgages.

Catch up quick: President Biden announced in December that payments wouldn't resume until May 1, extending the 2020 pause a fifth time amid the onset of the Omicron variant surge.

  • This was despite originally labeling the previous moratorium as the "final extension."

So what now?

💭 Our take: Sure, this is a good time to pay off high-interest debt that isn't paused, like private student loans or credit cards.

  • But if student loans are your major, looming financial burden, it's easy to feel torn between two uncertain options.

🤔 Do you chip away at them while interest rates are paused to make a big dent and risk spending money you could have saved or invested?

  • Or do you build your savings and cling to the hope of student loan forgiveness, such as the $10,000 that Biden proposed on the campaign trail?

📬 We're curious: What's your take? Email [email protected] and let us know if you're stressed too.

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