LENEXA, Kan. — In less than three weeks, the federal student loan repayment pause will expire. The Biden administration had extended the deadline for the fourth time to Aug. 31 in hopes of helping families while navigating pandemic hardships.
Kelly Hansen has been paying off her student loans for 34 years. She pursued higher education to answer her calling.
“My mom was a single mom and a teacher," Hansen said. "She wanted me to get a good education, so I went to Montana State University and graduated in 1991."
Hansen went on to pursue a career in culinary arts as an adult and most recently graduated from seminary school to become a hospital chaplain. While she believes all her education was worth the financial investment, her debt has racked up over the years.
“Just myself, without my spouse, have about $90,000 in student loan debt right now,” she said. “Thirty-four years of paying off, off and on.”
The student loan moratorium during COVID-19 was a sigh of relief for Hansen. She and her husband wanted to use that time and get ahead on payments, but life had other plans.
“You know, we thought we could build up that 6-month reserve that you’re supposed to have, and we’re still plugging away at that, let alone other debt,” Hansen said.
Student loan advisor Jason Anderson says these types of loans are difficult because one cannot file bankruptcy or use any other mechanisms in society to get rid of debt. A borrower’s best bet is to find the right repayment plan.
“If you are struggling to pay off your federal student loans, there are other plans," Anderson said. "Income-driven repayment plans that peg to your income, and it's significantly less than the standard repayment plan. Certain occupations can get loan forgiveness, so specifically we’re talking about teachers, doctors in certain states and public servants in particular.”
Anderson believes with the political climate of the country heading into elections, the Biden administration will extend the moratorium once again. Whether the administration will forgive debt or how much they will forgive is unclear.
Working two jobs and living paycheck to paycheck with her husband in Lenexa, Hansen says the nearing deadline can feel overwhelming.
“But you just kind of have to laugh about it and know things are going to work out,” Hansen said.
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