Financial expert says start saving as White House extends student loan pause
NASHVILLE, Tenn. (WSMV) - For those gearing up to pay student loans once again, the Biden Administration plans to freeze federal student loan payments through August.
However, local financial experts said it’s never too early to start preparing for the payments.
“It’s been a little rough,” Michelle Ogunyemi, a travel nurse, said.
Ogunyemi has been a nurse for about 10 years. Like many Americans, she took a break from paying student loans at the beginning of the pandemic.
“It’s been beneficial since they held it off for us and we can focus on working and other things,” Ogunyemi said. “Now that it’s about to come back, I am really hoping and praying for some student loan relief, especially for nurses.”
Student loan payments were expected to resume after May 1, but an extension through Aug. 31 will now give borrowers like Ogunyemi more time.
To help people prepare for repayment, Angelita Dobbs, financial director of SPD CPA Firm said this delay gives people time to save.
“We always think that there are going to be extra funds somewhere. I think that if we look at exactly where we are spending, I think that’s the key for anybody,” Dobbs said.
Dobbs also recommends saving a portion of what you earn. She said while gas and groceries are more expensive, combining trips and considering off-brand items could help you in the long run.
“As we prepare for those expenses that are going to come up, those are the things we have to look at. There are always going to be those disposable items we don’t think about,” Dobbs said.
Copyright 2022 WSMV. All rights reserved.