Loans – Local students react to student loan deferral extension
WILMINGTON, NC (WWAY) — A new executive order from President Joe Biden is affecting more than 41 million Americans, some here in the Cape Fear.
Starting Thursday, the Department of Education extended student loan deferrals to October 2021, instead of January 31.
The Biden Administration decided to extend deferrals on government issued loans due to the pandemic’s financial strain.
Now, those loans won’t accrue interest until October, and borrowers won’t have to pay them until that time, either.
Chris Musgrove is a student at Cape Fear Community College, and said both he and his wife have student loans. He hoped this extra time would help his family rebuild their savings.
“People have to make money to get back in the swing of things,” said Musgrove. “So I think this will help people hopefully save for when that time starts. Save what little they can.”
Ella Headlee, a sophomore at UNCW agreed, but hopes the Biden Administration will continue to offer help to those amassing student debt.
“We’re pretty much in an economic recession right now,” said Headlee. “And so, it would just be helpful for us if they could at least help us out a little bit and help us pay for our education since…. we’re the future.”
Most students we spoke with Friday didn’t know about this deferral extension, but the most common reaction was a sign of relief.