Recently Wes Moss was featured in a Fox Business article where he shared his insights on student loan forgiveness and how it has raised concerns during the inflationary period.
“For borrowers resuming payments next year, new provisions will reduce monthly payment requirements dramatically relative to income,” Wes Moss, CFP®, partner at Capital Investment Advisors, said. “In some cases, the minimum monthly payment could be reduced by more than 50%. This puts more money into the pockets of consumers to spend on discretionary goods and services and will act as a further economic stimulus that could put upward pressure on inflation.”
If you have private student loans, these will not qualify for federal student debt cancellation. However, you can reduce your monthly payment by refinancing to a lower interest rate.
While there is no debt relief for private student loans, the federal forgiveness plan could have a ripple effect on this sector.
One potential positive outcome is that with more money in their pockets, borrowers are more likely to be able to repay their private student loans, analysts say.