calling on the president to susspend interest payments for student loans for 12 months. nancy mace on that and who pays for it. she s here. welcome, everyone. i m not neil cavuto. neil cavuto is getting well-deserved vacation. i m edward lawrence. this is a special edition of your world. first to jacqui heinrich on what the white house is saying about next steps for this. jacqui? yeah, the white house is going to have a hard time fulfilling calls from alexandria ocasio-cortez and others to suspect interest on students loan payments during that 12-month great period the administration is enacting before payments resume. as part of the budget agreement, the president signed in to law those payments must start again after august. the first ones are due in october. the only reason this grace period is considered a valid work around is because the bills would still be due but interest would be accruing. otherwise, it would be a
placed in default, reported to credit agencies. does one have to qualify or should a person with loans here, i have another year i don t have to start making those payments? yeah, there is no qualifications for it. there is no income criteria or otherwise. if your loans have been eligible for the covid pause and you can t afford to make your payments of any kind during that first 12 months, you won t see a negative impact on your credit report. however, interest is going to start accruing again on september 1. so it s different from the pause where no interest was accruing. so you will still have that interest building up during that period. the repayment plan announced friday offers lower payment options for at least some. is everyone eligible for those, and how do you recalibrate those monthly payments? so the vast majority of federal student loan borrowers
out how to pay these expenses can take time for borrowers and they might miss payments on the front end as they get back into repayment. normally this can lead them to f fall into default. that will hurt financial security. it s not good for them or the economy. that s why we re creating a temporary 12-month what we re calling on ramp repayment program. this is not the same as a student loan pause. it s been in effect the past three years. monthly payments will be due, bills will not go out and interest will be accruing. during this period, if you can pay your montly bills, you should. if you cannot, if you miss payments, this on ramp temporarily will remove the threat of default or having your credit harmed which can hurt borrowers for years to come. because the department of education won t refer borrowers. the reason that will not work, they won t referboroers that
bills will not go out and interest will be accruing. and during this period if you can pay your monthly bills, you should. but if you cannot, if you miss payments, this on-ramp temporarily will remove the threat of default or having your credit harmed which can hurt borrowers for years to come because the department of education won t refer borrowers. the reason why that will work, they won t refer borrowers who miss payments for 12 months. let me close with this. republican officials say student loan relief is a give away to the privileged. you hear that loud now. the privileged. i love the concern for the privileged. but i know he who student loan borrowers are in this country. so do all you. the couple putting off having a child until they can find a way to deal with their debt. young putting off buying their first home so they can get out
repaid. michelle singletary writes the nationally syndicated personal finance column, the color of money for the new york post, and also the author of the book, what to do with your money when a crisis hits: a survival guide. thank you so much for joining us today. in this case, if the supreme court rules against student loan forgiveness, what is your advice to all of those people out there who are counting on your loans going away and would then have to find a way instead to pay them off? yeah, we ll they ll have about three months to begin making their payments. the interest will start accruing in september, and the first payment wouldn t be do until october. and so what i have been telling people, if you haven t been making any payments and you got used to that pause, to start practicing paying those payments now. so put that money in a savings account and see how it impacts your budget. and if you find that that is