Student Loan Debt: Should You Pay Now?

Student loan debt hit a new record, despite a pause in payments from federal loan holders.

CHARLOTTE, NC — Should You Pay Your Student Loans?

Student loan debt hit a new record, despite a pause in payments from federal loan holders.

The Federal Reserve Bank of New York reports that student debt reached $1.59 trillion in the first quarter of 2022.

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This is the second category of consumer debt behind mortgages.

RELATED: Claiming 40% of Americans Who Take Out Student Loans Never Graduated Needs Context

The Biden administration continues to float the idea of ​​some form of debt cancellation, but for now payments are on hold until the end of August.

In the meantime, private student loans still bear interest and must be repaid.

So should you repay your loans right now?

Most experts agree that if you have federal loans, it’s a good idea to wait during the payment break to see if the government takes action on the forgiveness.

If you have private loans, experts say you should keep paying or work with your lender if you need help.

RELATED: Yes, Biden Offered Full Debt Forgiveness for HBCUs and Public College Students on the Campaign Trail

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