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School loan defaulters getting a break

I was going to write today about saving money on health insurance to help pay off your student loans. But that will have to wait. I just stumbled on an article about another government move to help school loan borrowers. As I discuss it, please understand that these only apply to federal student loans and won’t help you with other loans.

Recently, I let all of you know that the payment pause on federal student loans had been extended another four months. I also recommended that you put the payments you would have made into a bank account for when the payments start again. In addition, I found credible evidence that school loans are not likely to be forgiven, and the discussion about the topic is generally rhetoric for political gain.

So, what is this about? Many student loan borrowers have fallen behind and are in default. The sourced article (link below) indicates about 25% of student loan borrowers are in default. That 25% will be granted a “fresh start,” and they’ll be put into good standing in the system. This will also stop collection activity. Remember, the federal government can garnish your wages, withhold tax refunds, or even take money from Social Security payments to repay those loans.

You want to get your student loans paid off as quickly as possible. With this reset, you may be able to move into an income-based payment plan, apply for help for various reasons, or even request a general forbearance.

Use this to get yourself out of the bondage of student loans and move towards financial freedom.

Please forward this to anyone who would benefit from reading it or anyone who would benefit from the upcoming posts. And thanks for reading.

#SayNoToCollegeDebt, #CollegeLoans, #StudentLoans, #CollegeDebt, #StudentLoanForgiveness,

Source: https://www.cnbc.com/2022/04/11/millions-of-student-loan-borrowers-in-default-are-getting-a-fresh-start-.html

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