NASHVILLE, Tenn. (WTVF) — While many are celebrating the Biden Administration's decision to cancel up to $10,000 of federal student loan debt for most borrowers, most Tennesseans who have student loans have much more than that to still pay off.
"I think that's the question everybody's wondering: do I hold out, do I wait for the government to forgive even more debt?" said financial adviser Carson Odom with David Adams Wealth Group.
The Biden Administration announced Wednesday it's also extending the pause on paying student loans through the end of the year.
But financial advisers said if graduates haven't been paying off their debt, now's a good time to start. This would help knock out the principal, meaning you'll pay less in interest in the long run.
"Work your way up," Odom said. "Start by paying $50 and break off some spending you've incorporated over the years, then $100 the next month, then $150, work your way up to prepare yourself."
Advisors say it's not a good idea to hold off loan payments, assuming the government will forgive any more debt. After all, advisors say, today's decision doesn't just make money disappear. They say this decision, and any future decisions on student loans will have impacts on inflation and tax rates that everyone ends up paying.
"Every check the government writes comes from somewhere, it comes from somebody's pocket, and that pocket is taxpayers," Odom said.
