What can you do this year to work toward becoming a student debt-free student?

We often think of the new year as a fresh start, but one of the obstacles that remains behind for many is the burden of student debt. The good news is that you don’t have to carry that burden forever, and you don’t have to do it alone.

With 2023 officially upon us, now is the perfect time to adjust your financial mindset. Let’s review what happened to student loans in 2022, look ahead to what’s to come in 2023 and talk about what are you can be done this year to work towards debt freedom, regardless of what the government throws at us.

President Joe Biden first announced his student forgiveness plan in August 2022, offering to cancel $20K in student loans for millions of Americans. For those who are burdened by the burden of student loans – some of whom have been paying them off for years – this plan was like a comforting relief after two difficult years of illness.

Others were worried about this news, wondering how our country can forgive loans considering our national debt is over $31 million. In response, Republican leaders challenged Biden’s proposal in a lawsuit, which will go to the Supreme Court on February 28, 2023.

With all the back and forth arguments, this topic can feel confusing, depressing and exhausting. But the truth is, no one knows exactly how to solve this situation. What are we? do know that you don’t have to wait for the government to get rid of your student loans. Yes, the student loan problem in America is overwhelming — and at times, it can feel inconvenient — but there are steps you can take now to set yourself up for success. future money.

Here’s what we know for sure and what you can do to make real progress in times of uncertainty:

  1. The student loan break has been extended… Student loan payments were suspended in March 2020 in an effort to provide financial relief during the pandemic. The repayments were supposed to start again in September 2020, but the suspension has been extended by former Presidents Donald Trump and Biden.
  2. The extension has an end in sight. While some people have begun to expect this series of additions to continue, a time limit has been officially announced. Well, if Biden’s plan is to forgive loans that are not in effect on June 30, 2023, the loan will be repaid 60 days later (approximately September 2023). But remember, there will still be more than 40 months of interest-free relief for borrowers.
  3. Now is the best time to process payments. One of the benefits of this waiting period is the continued interest relief. And because you don’t found by making payments now, it may feel tempting to delay paying off your student loans while the lenders sort out their disputes. But the truth is, this is the best time to make payments and keep your energy up. Think how much progress you can make on your balance while the interest rate is unmatched.
  4. You don’t have to rely on the government to bail you out of debt. It is not wise to wait in Washington to improve your finances. Instead, embrace the turtle mindset and keep moving slowly but steadily. If you are disciplined and committed to the process, you can continue (now without interest!) towards your goal of paying off debt. I’ve seen thousands of people get there, and you can too.

When it comes to the problem of student loans, there are many points to consider. But no matter where you fall on many perspectives, you can be sure of one fact that remains: Politicians don’t give you the life you want. . You do. And whether you’re months or years into paying off your student loans, don’t give up. Do your best to get rid of as much of that debt as you can without interest. Come September, you’ll be thrilled with all the progress you’ve made.

And if you are a high school student watching this debate, let this be a warning to you. Avoid the long-term burden of student debt. There are countless ways to save money and win scholarships – it takes planning and discipline now to find freedom on the other side of your degree. Check out this article for more information on paying for college debt free!

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