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Student loan forgiveness is unlikely to impact inflation

Betsy Mayotte, President of The Institute of Student Loan Advisors echoes Kantrowitz’s statements, saying that roughly $100 of extra cash a month is unlikely to allow most borrowers to make those large purchases, especially if they’re already struggling to make their monthly payments.

“If they [the Biden administration] were to forgive all of it [student loan debt], that would be a different story, “she says. “But I think everyone can agree that’s not on the table.”

Here’s what you should know if you applied for student loan forgiveness

Betsy Mayotte, President of the Institute of Student Loan Advisors, encourages people not to make any payments until the pause has ended.

“I’ve been telling people to pretend they’re paying their student loan, but to put it into an interest-bearing account for now if you’re able,” she said. “Then you’ve maintained the habit of making the payment, but earning a little bit of interest as well. There’s no reason to send that money to the student loans until the last minute of the zero percent interest rate.”

Student loan payments may not resume until August. Here’s what borrowers need to know

Betsy Mayotte, president of The Institute of Student Loan Advisors, warned borrowers to first understand the federal protections they’re giving up before they refinance.

For example, the Education Department allows you to postpone your bills without interest accruing if you can prove economic hardship. The government also offers loan forgiveness programs for teachers and public servants.

“Refinancing can generate a lower interest rate than federal student loan rates,” Mayotte said. “But your rate doesn’t matter if you lose your job, have sudden medical expenses, can’t afford your payments and find that defaulting is your only option.”

A Florida teacher thought she’d settled her student loan debt 20 years ago. Then she got a bill for $1 million.

Michelle’s daughter posted the letter to Reddit — a site that Michelle said she had visited “maybe twice” in her life before — in a section dedicated to discussions about student loans. The site’s users quickly tagged one member — Betsy Mayotte, the president and founder of an organization called The Institute of Student Loan Advisors, which provides a range of free services to borrowers like Michelle.

Mayotte is a regular in the site’s r/StudentLoans subreddit, where people share personal experiences and tips as they navigate daunting repayment schedules amid changing debt relief policies under the Biden Administration, and frequently uses it to connect with people who need advice about their loans. In a comment on the original post from Michelle’s daughter, another user calls Mayotte the “GOAT,” which stands for greatest of all time.