HOUSTON – Federal student loan borrowers may receive some reprieve this month once President-elect Joe Biden takes office.
Daisy Bordeau is a managing partner at Allison Funeral Service in Liberty. Bordeau is putting her undergraduate degree in mortuary science to work as the number of people needing burial has spiked due to COVID-19.
“I do have student loan debt. I’ve got it paid down,” Bordeau said. “I think I’m at about $12,000 or $13,000. So, it’s a lot better than the $20,000 I was at a year ago.”
Bordeau said while she has made a dent in her debt. She also took advantage of the break-in monthly payments. She is not alone. Less than 11% of people with federal student loans are repaying them during the pandemic, according to CNBC. That works out to 4.6 million of 42 million borrowers.
Americans as a collective have about $1.7 trillion in student loan debt with the average 2019 graduate carrying a $28,950 balance, according to the Federal Reserve.
The Trump Administration in March paused student loan interest from accruing due to the pandemic.
“It’s been nice to just not have to make that payment because even though I have kept my job there are still other more expenses that have occurred in the time that we have here,” Bordeau said.
President-elect Biden, on day one, plans to ask the Education Department to offer an extension to borrowers. Unless that happens, the student loan interest is set to resume on Feb. 1. The incoming president is also considering erasing $10,000 in federal student loan debt per person, which has sparked controversy.