Originally Published by The New York Times
The Supreme Court decisions that struck down affirmative action programs and President Biden’s student debt cancellation plan will affect millions of people, whether they’re about to apply for college or are trying to pay it off.
For the first time in three years, student loan repayment is about to resume after being paused at the start of the pandemic, and Tara created a guide to the restart here. The Biden administration plans to carry out a new income-driven repayment program that could lower monthly payments for millions of people. Tara has an F.A.Q. for that as well.
And last week, the Biden administration vowed to try a new legal tactic for widespread student debt cancellation, using a different law from the one its failed effort relied on. Here’s the article our colleague Charlie Savage wrote about that.
We asked readers to send us their questions about paying for college and have answered a selection of them below.
How is it possible to pay for college?! It’s daunting. How can we let our 18-year-old get into six-figure debt? It feels irresponsible. — Janet Green, Burlington, Vt.
The most calming answer to this question is the one that Kevin McKinley, a financial planner in Eau Claire, Wis., gives out: Think about this in chunks.
If you can save half, a third or even a quarter of the cost of college over the first 18 years of a child’s life, that’s great. Then you can pay for some of the rest using your current income while your kid is in college and the final chunk by borrowing. Ron wrote about what he calls the McKinley Rule here and here.
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