August 11, 2021 – As you may be aware many have been seeking student loan forgiveness, and you may be in luck. The White House has put out that federal student loan holders have another 6 months before making payments. The current pause on payments has been in effect since March 2020.
And this affects over 40 million Americans. Due to Covid, 19 people have been struggling with their bills and lack of jobs. Although many were able to get government checks and unemployment, many still were struggling with their debts.
In a recent article, it was said that “While the economy has begun to show promising signs of recovery, more than 9 million Americans remain out of work, and the economic and health disparities created by the pandemic are severe.”
Should You Pay Your Student Loan Debt?
It has also been said that if you are seeking “public service loan forgiveness” or on an “income-driven repayment plan; you may want to hold off on any further payments. This is because you may only be reducing the student loan debt you may be forgiven for.
On the other hand, borrowers in a standard repayment program should continue to keep making payments. The reason for this is since the interest is stopped, any payments made now will shrink the principal amount owed. Thus at the end of the six months, your debt will shrink much quicker.
Another thing is during this pause, and you won’t be subject to any wage garnishments. Sadly, none of this applies to private student loans.
Lastly, the department of education said this is the last of any extensions given.
There have been many people coming to us that have found errors in the credit reports. If you find your credit report is incorrectly reporting your student loan debt, please feel free to contact us. Often we can help you find a solution quickly.