DAYTON, Ohio (WDTN) — President Biden’s Student Loan Payment Pause is set to expire in less than two weeks. Some universities in the Miami Valley say students need to be preparing and saving ahead of time regardless of when the pause ends.

“This has really been political theater and I strongly suspect there’s not a forgiveness implemented and I don’t think there will be,” said Cedarville University Financial Aid Executive Director Kim Jenerette. “I think there will be another extension and extend into the election.”

Cedarville University Financial Aid Executive Director Kim Jenerette says he’s anticipating Biden’s student loan pause to continue for the foreseeable future. Jenerette says the loan repayment pause was very beneficial for borrowers back in 2020 but now, it’s time to start repaying loans.

“To forgive thousands and thousands of dollars, that may be good for me but what about the economy, what about the overall budget, that’s where I get concerned,” said Jenerette.

One of Jenerette’s biggest concerns is students accidentally entering into student loan default, which means failing to make any type of payment towards student loans for 8 to 9 months consecutively. Some students haven’t looked at their loans once in 30 months.

“It’s been 30 months for some students, there are some students that have never paid a penny on the loans they’ve borrowed because they graduated recently,” said Jenerette. “It is probable some students will go into default because they don’t know who their loan servicer is and I’ve seen that in the past.”

Whether Biden extends or cancels the student loan pause, Jenerette says his decades of experience has taught him one thing; borrowers need to be making payments on unsubsidized loans immediately.

“During the pause when there’s no interest building up, what better way than to save yourself in the long run and short run to pay loans off, especially the unsubsidized loan,” said Jenerette.
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