Page 13 - May 2022 Issue.indd

extended again in August until aft er the
November election. President Biden has
also made it clear that he supports the
elimination of $10,000 in student loan
debt per borrower, which is substantially
less than the $50,000 advocated for by
progressives in Congress led by Senator Caroline County
Elizabeth Warren. A perfect time to
make political hay and eliminate some Republican Women
amount of student loans would be right Hosting a
before the election, especially with the
Democrat party looking so weak right
now. Candidate Forum
At a time when we are on the proverbial
first steps of a journey of a thousand
miles and our economy is adjusting Come meet your candidates

to runaway inflation, war/genocide in
Ukraine, Covid shutdowns in China, Saturday, May 21, 2022 • 9 AM - Noon

supply chain bottlenecks, bird flu and a
multitude of other economic maladies,
this president and some in his party Denton American Legion
want to split the classes. 9238 Legion Rd, Denton, MD
As reported in the same OP/ED article
of April 7, “The Committee for a Bring your questions and enjoy your time
Responsible Federal Budget (CRFB) with your local candidates.
estimates the pause has cost taxpayers
more than $100 billion, and the latest
4-month extension will add $15 to $20
billion”. Lite fare will FREE and Open
be served to the Public

The OP/ED continues, “Th is extension
will mostly benefit those who need it
the least-higher earners with graduate
degrees. By CRFB’s estimate, a new
lawyer has already received $30,000
of debt cancellation due to interest
cancellation during the pandemic
and higher-than-expected inflation. For information, call
Because graduate degree holders have Lynn Faulstick
much more debt and they carry higher at 860-227-4400
interest rates, they benefit most from
the government forbearance. A recent
master’s degree recipient has received
you pay is going directly to reducing the Assume you owe $10,000 in student
an average of $13,500 in relief which is
principal. loan debt at a rate of 5% for a term of
3-4 times more that someone who just four remaining years and you have not
completed a bachelor’s or associate’s If you paid $200 per month when you made a payment in 24 months. Based on
degree”. didn’t have to then you would have
reduced the outstanding balance by these assumptions your payment will be
The smart thing for someone in a $229 per month.
$4,800 in the past two years. This in
solid financial position with a decent
turn will reduce the balance your new But if you had paid $200 per month
job and limited other debts to do is to
payments will be based on, assuming instead of nothing, the amount you
make payments on your student loan
you will have to make payments again would owe would be $5,200. ($200
when you don’t have to. Remember, the
at some point. payment x 24 months). You still have
balance was frozen in March of 2020

with no increase in the balance due to The way this works is simple. Assume 48 months left on your loan but because
unpaid/deferred interest payments. If that student loan forbearance is not your balance is lower by $4,800 your
interest is not accruing, then every dollar extended, and payments will resume
in August or September of this year. (continued on next page)
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