In perhaps a twist on the concept, students in Pa. are appreciative that they’ve gotten a suspension. In this case, it’s the Biden administration’s pause on repayments of federal student loans — a temporary relief action that many hope will continue. Taylor Allen and Mike D’Onofrio studied the implications for Axios.
U.S. student debt has now accumulated to $1.7 trillion, and Pa. borrowers represent a significant portion of that repayment obligation. The Keystone State is sixth in the nation for its share of residents with student loans, with more than 60 percent of graduates being saddled with ongoing education payments in 2019–2020. The average debt was about $39,300.
The financial impact cuts deep. It forces young professionals to delay major life decisions such as buying homes or starting families.
The original emergency moratorium on federal student loan payments was initiated in 2020 and was supposed to only last for six months. It was, however, extended several times as the COVID-19 pandemic dragged on. The latest reprieve, announced in Dec., lasts until May 1.
Overall, Pennsylvania has cut its higher education funding per student by a third over the past decade, as enrollment continues to decrease.
Read more about Pa.’s federal student loan situation in Axios.