Tracy Baton stands on the median between the two lanes of East Liberty Boulevard. Before the pause, she had about $500 of monthly payments for her student loans. (Photo by Lily Kubit/PublicSource)
Payment pauses and debt relief have enabled big investments. But for many, big balances still hang over major life decisions.
When the government paused federal student loan payments at the start of the COVID-19 pandemic, it changed Cody Fulton’s life.
Because of monthly payments of $300 for his private loans and $600 for his federal loans, saving money had proved difficult. Being free of that $600 monthly payment empowered Fulton to make a big purchase.
“In a little under a year and a half’s time of just getting those federal student loan payments off of my plate and not paying them, I was able to purchase a home,” Fulton said. “And, man, that is insane.”
Now, the 34-year-old Brookline resident expects $20,000 of his roughly $100,000 student loan debt to be relieved, following an announcement by President Joe Biden of a student debt relief initiative. That will help, but what excites him most is a provision of the initiative that caps payment on undergraduate loans at 5% of discretionary income. It has inspired him to consider a potential career change several years down the line, from his current field of information technology to public history work — his deepest passion — perhaps at a museum.
“I’ve always been a huge fan of history and the importance [of what] history tells us for the future,” Fulton said. “And I feel it’s very important that the public knows that as well and shares in my love of history. It’s something I’ve always wanted to do.”
Others drowning in student loan debt won’t receive much assistance — and some won’t receive any. Biden’s student loan forgiveness program will provide substantial relief for millions but will do little to nothing for millions of others suffering the burden of their student loans. To some, the move just raises more questions about a higher education system that trades its benefits for enormous debt.
Kaleigh Mauroni sits outside of the Cathedral of Learning on the Pitt Campus where she attended school. (Photo by Benjamin Brady/PublicSource)
Refinanced debt devours a paycheck
Kaleigh Mauroni graduated college with a degree in linguistics, a subject she loved but one that didn’t yield a job in that field. She refinanced her student loan debt with NaviRefi, a refinancing program offered by the student loan servicer Navient, to help control monthly payments and interest rates. She now has about $65,000 in private loans, with monthly payments of about $900.
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