More than 10,000 Minnesotans to resume student loan payments in October
INVER GROVE HEIGHTS, Minn. -- More than 10,000 Minnesotans will soon have to start paying their student loans back again after the Supreme Court wiped out President Biden's program to forgive billions of dollars in student debt.
The average student-loan debt in Minnesota is more than $30,000.
"I made the right decision to go to a community college just so I don't accumulate so much debt," said Inver Hills Community College student, Karina Villeda. "And this decision today lets me know in the future I'm going to be held back from buying a house, saving for retirement."
Villeda is close to completing her program in paralegal studies and for now, may put her dreams of law school on hold.
"Now I just think about how much money I am going to have to pay back. I'm a bit scared," said Villeda.
Some are also scared the ruling could hurt the economy.
"There is something about this notion that, if I have this money to pay for my student loans, if that is going to start again on October 1, I might not be able to spend that money elsewhere in the economy, and that's the fear," said CBS News business analyst Jill Schlesinger.
Many who owe were counting on Biden's student debt relief program, which was one of his campaign promises, to help them.
MORE: Minnesota officials react to Supreme Court student loan ruling
"Without this, they now have to figure out how they are going to financially afford to start paying this debt in the next couple of months here," said Executive Director LeadMN, Mike Dean.
LeadMN represents 100,000 community and technical students in Minnesota. Dean believes the U.S. Supreme Court's decision will lead to lower enrollments.
"One of our student leaders told us they are going to have to put their education on hold for a year because they are going to be expected to start paying it back. So they are going to wait a year until Minnesota's North Star promise kicks in 2024," Dean said.
Minnesota's North Star program creates a free college program for families whose income is under $80,000.
Financial experts say borrowers could look for other options, like an income-based repayment plan. That would stretch out the period that you owe the money but reduce the amount you pay every month.
President Biden says he's moving forward on a new student debt relief program.
Loan repayments will start in October.
