Refinance Student Debt

On student loans, President Joe Biden once again has decided to kick the proverbial can down the road.

He recently extended the moratorium on student loan repayments for a fourth time. The moratorium first was implemented when President Donald Trump signed the CARES Act into law March 2020, and it now extends through August 2022.

In other words, no one has had to make a student loan payment for the past two years. The sky has not fallen and that means creative solutions are possible. One such option is to refinance the debt.

First, extend the term of all new and existing loans from 10 years to 30 years. Second, set the interest rate on these loans to 0%. That would drop the average monthly payment down considerably. It would provide real relief for loan holders, without forgiving anyone’s debt.

Originally printed as a letter to the editor of the Richmond Times-Dispatch. Click here to view.