Student Loans: Over Half of Americans Say They Can't Pay

Just when you thought you were safe from selling pictures of your feet 🦶on the internet, student loan payments are set to resume on September 1st. 

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Loan payments were originally suspended to help people survive pandemic-related financial problems. But now a recent survey shows that nearly 60% of people with student loans on hold say they won’t be able to resume making payments in the Fall! 😱

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Many of those folks were banking on Biden to follow through on his campaign promise to forgive student debt, but that's not looking very...promising.

Here’s Five Fast Facts on the issue:

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1. 🤑 Paying Their Dues: Only around 28% of the people from the survey said they can handle loan payments. Another 12% said that they could pay some of what they owe, but not the full amount. That’s not looking good…
2. 👧👦 The Kids Are Alright: Almost half of the respondents in the 18 to 24 age range said they have no issue affording their student loan payments. So, at least the youngest student loan holders will be ok. The Millennial crowd? Not so much
3. 💲 Trillion, with a T: Currently, the total amount of student loan debt in the United States is $1.747 trillion and the lion share of that is held by those between the ages of 25 and 50.
4. 🙏 Please Forgive Me: Existing federal programs for student loan forgiveness have dished out almost $17 billion in aid over the last year, but some say it's not enough.
5. 💥 Burst My Bubble: Wall Street folks say that any further repayment extensions would throw inflation over the top, giving those who can afford to pay another break they don't need. Plus, when no one's refinancing their loans, big bankers don't get paid.

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🔥Bottom line: Extensions on student loan payments may help in the short term, but they only prolong the inevitable for those who can't afford them to begin with. A solution to the nation's crippling student loan debt is a hot button issue for both sides of the aisle. Solving the problem in a way everyone's happy with is very much TBD.  

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What's your take on student loan debt? Let us know by connecting with us on Social Media and be sure to share this newsletter with any friends & coworkers!

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