Financial planner weighs in on loan forgiveness

GLASGOW, Ky. – Many of us are wondering how the student loan forgiveness program the Biden administration announced will work.

Unfortunately right now, the citizens of the U.S. do not have those answers, but something we do know is that preparation is everything. News 40 had a brief interview with Clark Hayden, a financial planner, who gave some advice on how to handle the payments coming for those in January who were originally in deferment due to the pandemic.

Hayden said that you should be looking over your spending habits for the past few months to prepare for loan payment that you might have not had to pay in some time, adding “it’s easy to forget what those payments feel like”. Hayden also said on the flip side, if you are an individual or household that qualifies for forgiveness to have a plan in place on how you will handle your extra money. According to Hayden “theoretically your monthly income will go up because you’re not having to pay as much on your loans”.