Student Loans: What Should You Do?

For the better part of a year, those Americans with a balance on student loans have been given a grace period on payments during the Covid pandemic.

That grace period, according to an Executive Order President Biden signed on his first day in office, through September.

What is the best course of action now?

What if there is a bill that will eliminate student debt? Would making payments now potentially just be throwing money away?

Financial analysts say don’t count the chickens that haven’t hatched. This is the perfect window of opportunity to focus on paying down other high interest loans like credit cards and car loans since student loans tend be lower interest rates.

The grace period runs through the end of September and payments resume in October, so there is still time to put the money you’d be making in student loan payments into a safe savings plan and accrue interest, meager though it may be, and play the hand you are dealt when the time comes.

In the meantime, you have options.

photo: Getty Images

Portrait of mixed race woman holding jar of money for student loan

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