Minnesota student debt payment pause extended

(FOX 9) - Hundreds of thousands of people in Minnesota have student loan debt from college, and news President Biden's administration plans to extend the student loan moratorium through August 31 likely comes as a relief.

"We believe it will really help all the Minnesotans that are currently carrying federal student loan debt," Dennis Olson, commissioner of the Minnesota Office of Higher Education told FOX 9.
Amid rising inflation, Olson says it's easy to see why the payments should be delayed.

Loan payments were originally supposed to resume May 1 - after being halted several times throughout the pandemic.

"This is one way I think that students can have one less financial worry, as they work to line up all of their other necessary expenses and responsibilities and obligations," Olson said.

Loan payments were originally supposed to resume May 1 after being halted several times throughout the pandemic, but have now been extended to Aug. 31 - a decision that will affect many Minnesotans.

Data from the non-profit Student Borrower Protection Center shows there are 775,000 people in the state with student loans -- with an average debt of 37,500 per borrower.

"We want students to fully understand the debt that they hold and be able to understand all of the options that are available to them," Olson said.

Olson says he knows there will come a day when the payments have to start up again.

He's encouraging borrowers to keep an eye on information from their loan servicer, and explore income driven repayment plans.

The U.S. Department of Education can also help you understand what type of loans you have, and opportunities for refinancing.