Millions of federal student loan borrowers were relieved when the government paused payments on their loans throughout the coronavirus pandemic.
But that ended Oct. 1, leaving many uncertain about their future.
St. Louis Public Radio asked borrowers in the region how resuming repayment will affect their lives.
Rachel Bray, St. Louis
Rachel Bray graduated from Southern Illinois University Edwardsville with her bachelor's degree in 2015. Roughly eight years later, she has about $65,000 in student loan debt. She said she has mixed feelings about paying back her student loans. She loved her college experience and is still connected to the university.
Bray said she always intended to pay back her student loans in full. However, it was under the belief that earning a college degree and choosing a certain career path would lead to a fruitful income.
“Now that I’m out in the real world, those projected salaries and possibilities aren’t exactly reflective of today,” Bray said. “So, [it] a little bit feels like I was misled by this glitz and glam of what was on the other side of college, and I just haven’t really seen any evidence of it.”
The state of the economy has added an extra strain, making it even harder to pay back not only her student loans but also her husband’s. The U.S. Supreme Court’s conservative majority struck down an effort by the Biden administration for one-time student loan forgiveness. Bray wants lawmakers to do something about the growing student loan debt that affects millions nationwide.
“I urge lawmakers to remember that education should not be a privilege to the wealthy,” Bray said. “Student loans should not be a consequence to the poor. Many of my friends are advising their loved ones and children to find alternatives to college because of their student loan debt. Certainly college isn’t right for everyone, but those who do want to pursue a degree like I did should have the ability to do so without the promise of something our country can’t commit to.”
Bray is still holding out hope. She may qualify for the Biden administration’s new income-driven repayment plan—or SAVE Plan.
Jada Peten, St. Louis
Jada Peten graduated from St. Louis University in 2020 with a bachelor’s degree in political science and psychology. They had plans for pursuing a graduate degree before the world shut down during the coronavirus pandemic. That option was no longer viable.
“I ended up working a lot of low-wage jobs, a lot of temporary jobs for the past three years, which was honestly quite depressing,” Peten said.
Peten didn’t have financial help from their parents nor family. As a result, Peten had to take out loans. They have between $70,000 and $80,000 in student loan debt. The bulk is federal loans, while $15,000 is in private loans.
“We get no relief,” Peten said. “I still don’t have the disposable income to pay off student loan debt. So, what are my other options? The potential of having my wages garnished when I already don’t have the money to pay what needs to be paid.”
Peten has to prioritize day-to-day expenses like rent, groceries and a car payment—or student loans. They’re frustrated.
“No one deserves to be held burdened by these financially predatory systems such as student loan debt, especially when we were promised the idea that if you get a good education you’ll be able to find a good job,” Peten said. “And we know with our economy that just hasn’t gone that way. …Restarting student loans without confronting inflation is going to mess a lot of people up. Groceries are more expensive. Gas is more expensive. Rent is ever increasing. People are constantly being displaced, but you want them to make student loan payments? Something is going to give."
They are not confident that neither the Biden administration nor Congress will come up with a plan to forgive student loan debt for everyone.
Kim Lowell, St. Charles
Kim Lowell is part of what she calls a multigenerational student loan debt family. She’s been paying for her graduate degree for 18 years. Her 23-year-old son graduated in May and will start his first year of repayment this year.
“It’s challenging,” Lowell said. “It’s a lot of money, and I would have done things differently. We do not qualify for the SAVE plan. We’re just a little bit too high. So, we’re in the middle. We’re paying, and it’s tough.”
Lowell said she expects her three other high school-age children will also have to take out student loans when the time comes.
