In early August 2021, the Biden administration announced plans to extend its current student loan relief program. Prior to this announcement, the current Moratorium was scheduled to end in September. However, the leaders have returned this date to January 31, 2022. solve The team highlighted five key points of this latest extension below.
1. There is no other Extension
According to the Biden administration, this will be the “final” expansion Given the. However, the legally binding contract does not prevent you from issuing additional extensions. Still, student loan borrowers need to be prepared to begin repayment in February 2022.
2. Loan servicer is subject to change by early 2022
The current administration did not explain exactly why it decided to offer this extension. However, many lawmakers have expressed concern about future changes in federal student loan services that could affect debtors.
Currently, two of the largest federal student loan servicers are FedLoan Servicing and Granite State Management. Both of these entities have contracts with the Ministry of Education until the end of the year.
Unfortunately, neither servicer plans to renew the contract. This means that millions of accounts will be transferred to the new loan servicer.
3. Frozen months should be counted as eligible for loan forgiveness
Perhaps the best news related to this extension is that the suspended months still count towards various loan forgiveness programs. These months are counted as if the debtor is paying when determining the eligibility of a loan forgiveness. The suspended month is also due to the loan rehabilitation program.
4. Federal student loan is the only debt covered
The biggest drawback of this extension is that it only applies to federal student loans. Those with private student loan debt do not receive any protection with this plan.
This includes the following types of student loan debt:
● Perkins loan
● Private student loan
● FFEL-Program loan in good condition
However, the default FFEL loan is protected by the latest extension. If you are stuck with a private student loan debt, you will have to look for other remedies.
Perhaps the best way to deal with private student loan debt is to look for evidence-based debt settlement. This approach is safe and effective because you need to work with an experienced debt resolution attorney. These lawyers can help you settle your debt completely.
5. There is no student loan cancellation plan
Since the inauguration of the Biden administration, millions of current and former students have wanted their loans to be completely revoked. Currently, there are no concrete plans to reach that goal.
The administration continues to consider the legality of administrative measures to cancel the loan, but has not made any additional announcements about its progress.
Meanwhile, those with federal student loan debt will have to hold their breath and wait as the rest of the Moratorium month ends. Those who have a private loan may be best served by looking for a lawyer to settle their debt.
If you want to find a talented debt resolution lawyer Resolvly LLC can help. We are a lawyer referral service that specializes in connecting clients with leading lawyers.
About solve, LLC
solve Is a Florida Bar Association-approved lawyer referral service that helps clients across the country connect with consumer protection lawyers who specialize in debt resolution.
Founded in 2015, the Boca Raton-based company has become an industry leader with support.Thousands of Americans are finding appropriate legal solutions to reduce or eliminate unsecured debt. solve We support credit card debt, private student loans, business debt, medical expenses, and vehicle ownership.
Insights From Resolvly LLC: 5 Takeaways from the Latest Student Loan Relief Extension Source link Insights From Resolvly LLC: 5 Takeaways from the Latest Student Loan Relief Extension