CLEMSON, S.C. (WSPA)- It didn’t take long for the Biden administration to act fast after being sworn in Wednesday.
Several new executive orders were put in place, including a request to delay student loan payments.
Graduates like Amy McKenna who are fresh out of college, have entered the real world with lots of financial question marks amid the pandemic.
“We’re saving for cars, we’re saving for apartments, we’re saving for whatever you can,” McKenna said.
Adding, “A lot of students or recent graduates haven’t been able to get jobs yet that they can pay for their student loans yet.”
In response to this issue, last March congress put a pause on student loans as a part of the Covid relief package.
Now that President Biden has taken office, that relief could last longer than people thought.
Wednesday a new executive order is asking the Education Department to extend the pause at least until September 30th.
Chief investment officer at Carolina’s Wealth Management, Karyn Cavanaugh says a delay like this can make it seem like the debt is gone, but says students should still have their loans in the back of their mind when making financial decisions.
“The best thing to do is act like ok I know I have to pay next month even though you don’t have to pay next month and start paying yourself before you start paying other things,” Cavanaugh said. “So when October comes, it’s not the rude awakening where you say oh my gosh I’m not prepared for this.”
Adding that in the meantime, there’s things graduates can do out of college to relieve the burden of the loans coming up.
“The jobs that students would normally get, a lot of those jobs are not available,” Cavanaugh said. “As easy to get a job as you would’ve thought it would be, unemployment is still very high, the unemployment levels are high so I would say see where you can get work on the side.”
According to a report from the Associated Press, President Biden’s order does not include debt cancellation.
That’s a decision he says he wants to go through congress.