WHO 13 NEWS – Iowans with federal student loans now have even more time to begin making payments.
This week, the Biden administration extended the pause on federal student loan payments. This is the seventh extension of the pandemic relief program.
The freeze brings financial relief to tens of millions of borrowers of all ages. The interest-free extension now runs through Aug. 31.
Mark Triplett with Triplett-Westendorf Financial Group says student loan debt is a retirement issue because it impacts how you save for your future. He advises people to keep making student loan payments if you’re able to, but don’t wait until your student debt is paid off to be saving for your future.
“If it’s not federal loan debt, if it’s private loan debt you’ve got to keep paying those and you do not want to get behind there,” Triplett said. “And if you are able to put money towards your future savings, whether it’s contributing to an IRA, Roth IRA or 401k at work, absolutely be doing that even if it’s small amounts. Save early and often, and that compound interest will really pay off in the long run.”
President Biden campaigned on forgiving federal student loan debt, something that Congress would have to approve.