The U.S. Department of Education is allowing people to put a pause on their federal student loan payments and waiving interest during the COVID-19 pandemic.
"I will take advantage of this, I’ve calculated it, it may come out to $10 per month, but it's $10 more I get to keep in my pocket,” said Thomas Theall of Brighton.
President Donald Trump and the U.S. Department of Education will give student loan relief to millions across the country.
George Conboy, Brighton Securities chairman said, "This is all designed to get more money into the hand of, or keep more money in the hands of people who are paying students loans and who may have problems with loss of jobs, or loss of income, loss of employment, loss of daycare.”
The measure issued by the federal government does not forgive your student loans, but it suspends some collection activities and suspends the accrual of interest for at least 60 days.
"I think it helps some people, but I don't think personally it's enough for a lot of us," said Ruth Anna Sabol of Brighton.
Some people hope a second measure will pass to wipe out some of their student loans.
"Debt cancellation like I said would be very effective around here if they do a second package, I think it should be included. 5k, 10k, something would be really helpful right now,” said Sabol.
If you can afford to make payments, George Conboy of Brighton Securities said it could benefit you to continue paying down your loan balances.
"So if you have a chance now to pay that down while that interest is forgiven, when interest resumes again later in the year, you'll have a lower balance and your interest charges will be less,” said Conboy.
One person taking advantage of this pause on federal student loan payments plans to use the extra money to help the local economy.
"You know I may go out trying to support our local restaurants here that aren't seeing the type of traffic they normally see during this type of situation,” said Theall.
The pause in payment is not automatic, you must contact your loan provider by email or phone to request the loan forbearance.