BUFFALO, N.Y. (WKBW) — Chances are, you might know somebody that's had to take out student loans to help pay for their education. According to the Federal Reserve, the average amount of student debt a person is in after a four year degree is $28,950.
That all contributes to over $1.75 trillion in the nation's student loan debt.
But The White House could be looking to change that. Reports are coming out that President Biden will look to make a few announcements regarding debt relief in the United States. With the loan repayment freeze ending at the end of the month, The White House is expected to slash up to $10,000 in student loans for those who qualify.
"This would have a huge impact on individual's personal finances," Consumer Credit Counseling Service President/CEO Noelle Carter said.
As of right now, there are no official qualifications or announcements on eligibility. It's expected that The White House will say $150,000 or less of annual income will help you qualify for this financial cushion. This could really help college students struggling to pay other expenses.
According to Federal Student Aid, the 24 or younger age demographic owes $110 billion, so this could help. Carter said it's really easy to spend the relief that could come from their loans being trimmed down, but it's important to stay diligent.
"For a newly graduated student, I would just advise them to be cautious of their finances. Still be very aware of what the owe and what their monthly payments are going to be," Carter said.
One of the largest debt expenses in America comes from credit card debt. The Federal Reserve says the U.S. has peaked all-time in credit card debt, topping out at $930 billion. Payments like that are what Carter advises people to do, if they qualify for this relief.
"If you have high interest rate credit card debt, you're going to want to prioritize that... A lot of times, we don't realize how much money we're actually throwing away on interest payments," Carter said.
