What to do now that your student loan debt just shrunk by $10,000?

Aug 24, 2022, 6:00 PM

College Costs...

Dave & Dujanovic discuss a bill about universities being responsible for any student loan debt that goes into default among their students. (Photo: iStockPhoto.com)

(Photo: iStockPhoto.com)

SALT LAKE CITY — You just had your student loan debt seriously chopped by President Joe Biden. A financial expert has advice on your best steps forward.  

President Biden on Wednesday announced plans to deliver on a campaign promise and provide $10,000 in student debt cancellation for millions of Americans. 

Big student loan forgiveness plan announced by Biden

The Penn Wharton Budget Model found the total cost of the proposal could be $329 billion over 10 years.

Utah borrowers carry an average of $32,835 in student loan debt. At the top of the list, former and current students in Washington, D.C. are saddled with $54,945 in loan debt, according to Education Data Initiative.

Money wisdom

Shane Stewart, certified financial planner for Deseret Mutual Benefit Administrators, joins KSL NewsRadio’s Dave Noriega and Debbie Dujanovic. He discusses what show Producer Caitlyn Johnson should do now that her student loan debt. In an instant, it has just been reduced from $13,500 to $3,500, wiping away 6 1/2 years of loan payments.

“The whole idea of being financially independent is to run from debt. The worst thing she could do is run to debt, meaning, [she may be thinking] ‘Oh, wait, I have an additional couple $100 a month I could spend, why don’t I go get a new car or some other debt to fund. That’s the probably the worst thing that could be done.”

Student loan debt

With the loan reduction, Stewart said, comes a lower monthly payment. He urged Caitlyn to keep paying the same monthly payment to reduce her student loan to zero as quickly as possible. If not, she adds the 6 1/2 years back to the loan schedule.

“So, keep the foot on the gas with the monthly payment,” he said. “If you had a $200 month payment and now it’s $100, well, maybe pay at least $150 or more, but keep something going to get that timeframe down and get rid of [the debt] quicker.”

Caitlyn said she is committed to doing exactly that.

“I will say that $3,000 over $13,000 is just like way easier to look at,” she said.


Dave & Dujanovic can be heard weekdays from 9 a.m. to noon. on KSL NewsRadio. Users can find the show on the KSL NewsRadio website and app, as well as Apple Podcasts and Google Play. 

Read more:

We want to hear from you.

Have a story idea or tip? Send it to the KSL NewsRadio team here.

Dave & Dujanovic

pay gap...

Curt Gresseth

Why is the gender pay gap not closing?

The gender pay gap in the U.S. and Utah is not closing. A Utah financial planner details the impact that wage shortfall can have on a women workers over a career.

4 days ago

a hockey stick shown, utah may get a nhl stadium...

Adam Small

Utah lawmaker asks for $1 billion for an NHL stadium in Salt Lake City

To fund an NHL stadium in Utah, Salt Lake City's sales tax rate would go from 7.75% to 8.25% if the bill is approved.

5 days ago

crime Ballpark...

Curt Gresseth

Cop talks knocking down violent crime in Ballpark Neighborhood

Violent crime in the Ballpark Neighborhood of Salt Lake City is down. A deputy chief details how the SLCPD achieved the results.

6 days ago

UTA Frontrunner commuter rail. UTA Plans to address delays by updating cars and adding a new line t...

Curt Gresseth

UTA boss talks about train delays, says improvements coming

Despite frustrating delays, UTA has a 90 percent "on-time" record, says the executive officer.

7 days ago

social media...

Curt Gresseth and Don Brinkerhoff

Senate committee OK changes to Utah’s Social Media Regulations Act

A Utah lawmaker discusses his social media bill aimed to protect children while parents and a teen testify about loss of a son to suicide and the pain of addiction.

11 days ago

The IRS is writing checks for smaller tax refunds this year, but a Utah expert says it's still earl...

Curt Gresseth

Tax refunds are about 30% smaller than last year — but it’s early

The IRS is writing checks for smaller tax refunds this year, but it's still early in the tax season.

13 days ago

Sponsored Articles

Mother and cute toddler child in a little fancy wooden cottage, reading a book, drinking tea and en...

Visit Bear Lake

How to find the best winter lodging in Bear Lake, Utah

Winter lodging in Bear Lake can be more limited than in the summer, but with some careful planning you can easily book your next winter trip.

Happy family in winter clothing at the ski resort, winter time, watching at mountains in front of t...

Visit Bear Lake

Ski more for less: Affordable ski resorts near Bear Lake, Utah

Plan your perfect ski getaway in Bear Lake this winter, with pristine slopes, affordable tickets, and breathtaking scenery.

front of the Butch Cassidy museum with a man in a cowboy hat standing in the doorway...

Bear Lake Convention and Visitors Bureau

Looking Back: The History of Bear Lake

The history of Bear Lake is full of fascinating stories. At over 250,000 years old, the lake has seen generations of people visit its shores.

silhouette of a family looking over a lake with a bird in the top corner flying...

Bear Lake Convention and Visitors Bureau

8 Fun Activities To Do in Bear Lake Without Getting in the Water

Bear Lake offers plenty of activities for the whole family to enjoy without having to get in the water. Catch 8 of our favorite activities.

Wellsville Mountains in the spring with a pond in the foreground...

Wasatch Property Management

Advantages of Renting Over Owning a Home

Renting allows you to enjoy luxury amenities and low maintenance without the long-term commitment and responsibilities of owning a home.

Clouds over a red rock vista in Hurricane, Utah...

Wasatch Property Management

Why Southern Utah is a Retirement Paradise

Retirement in southern Utah offers plenty of cultural and recreational opportunities. Find out all that this region has to offer.

What to do now that your student loan debt just shrunk by $10,000?