If student loans are not suspended again, the following 4 things could happen

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You should expect these 4 things to happen if your student loans are not suspended again.

Here’s what you need to know – and what does it mean for your student loans

Student loans

IN letter For President Joe Biden, a group of more than 60 U.S. Senators, including Elizabeth Warren, Massachusetts and Chuck Schumer, New York, want to renew the student loan exemption after September 30, 2021, when it expires. The Cares Act – a $ 2.2 trillion stimulus package – suspended payments on federal student loans, set federal student loan interest rates at 0%, and stopped collection of student loans in the event of default. President Donald Trump and Biden have extended the student loan exemption to help student loan borrowers. Biden also granted student loan exemption to 1.1 million student loan borrowers with FFELP loans… The US Department of Education estimates that student loan borrowers will receive Cancellation of over $ 90 billion student loan during the Covid-19 pandemic through this student loan exemption. If Biden does not extend the student loan exemption for at least six months – until March 31, 2021 – senators say at least 4 bad things could happen:

1. Student loan borrowers will not pay off their student loans

Senators note that every year 1 million student loan borrowers defaults on their student loan repayments. Student loan defaults at this rate occurred before the Covid-19 pandemic. Senators say more student loan borrowers could default in the future – even if Biden Cancels $ 3 Billion Student Loans since he became president. Why? The negative impact of Covid-19, unemployment and other financial distress can make it difficult for student loan borrowers to pay off student loans and make ends meet. It can hurt credit ratings student loan borrowers and damage their credit.


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