TUCSON, Ariz. (KGUN) – President Biden’s $ 1.9 trillion relief program has sent checks to households across the United States. The goal is to help people pay off debts caused by the COVID-19 pandemic, but the bill too offers future hope to those struggling with a specific type of debt.
“The nation’s student loan debt was well over $ 1,000 billion before any of us knew what the coronavirus was,” said Andrew Pentis, Certified Student Loan Hero student loan advisor.
The Biden administration is now looking beyond the pandemic. The new relief program could help people with student loans. He specifies that any student debt relief granted between December 31, 2020 and January 1, 2026 would not be counted as income and, therefore, would be not be taxed.
“If the Biden administration or Congress decides to write off, say, $ 10,000 in student loan debt, it would dramatically help millions of borrowers overnight,” Pentis said.
As a certified student loan counselor, Pentis helps borrowers in Tucson. According to Student loan heroArizona has the twelfth highest student debt average in the United States at $ 34,712.
“In Pima County, that average is about the same. It’s just under $ 35,000. That equates to a monthly payment of $ 265,” Pentis said.
Borrowers are exempt from paying their student loans until the end of September 2021. Without guaranteed assistance afterwards, Pentis recommends making a plan.
“Do not wait until we get closer to the fall to plan the resumption of these monthly payments. Where is the light at the end of the tunnel? How can you possibly end your debt? Come up with this strategy, ”says Pentis.