Student Loan debt is increasing twice as fast as it did before the Covid Shutdown. Outstanding student loan debt in the U.S. is now a record high $1.57 trillion, a $166 billion increase year over year. Travis Hornsby Student Loan Planner says the Covid Relief Measure of pausing Federal loan payments is making even the most diligent of loan payers take a break. "There are some people out there that desperately need the help. But I would say the majority of borrowers are doing quite well in terms of being able to make payments. According to Federal Police - they are not going to need to start back doing it until September 30th, 2021."
Hornsby isn't surprised. "It really makes sense. If you could not payments on something where you're getting a 0% interest rate, then you literally put even that money in the bank and 0.25 % interest rate and be out earning that." "People are really grateful to have a bit of reprieve and I think most people are simply saving the money." Hornsby says many are using the payment to pay off credit cards or save for a home.