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Under the Coronavirus Aid, Relief and Economic Security Act, or Cares Act, federal student loan payments and interest were suspended to help folks struggling to make ends meet because of the pandemic. Some people took the opportunity to catch up on some bills or concentrate on paying down high-interest credit card debt.
Do not expect debt relief to Student Loan Borrowers
The debt relief provided to federal student loan borrowers has been extended until January 31, 2022 but the Department of Education says don’t expect another reprieve.
Some people took the opportunity to catch up on some bills or concentrate on paying down high-interest credit card debt. Now that the relief is ending many will find themselves struggling with the financial pressure to make ends meet.
Making Student Loan Payments
There’s some indication that borrowers may struggle when payments restart: In a Pew Research Center survey conducted in May and June 2021, 67% of borrowers who responded said, if student loan bills arrived next month, they would have difficulty affording the payment amount.
Speaking to an experienced debt relief attorney at the Bond & Botes Law Offices will help you understand your options. Bankruptcy can help in many ways. Even though student loan debt is not normally dischargeable bankruptcy will provide you with a legal cushion to help you make your financial situation more tenable.
Many people, mistakenly believe bankruptcy will have deleterious effects on their credit, ability to get credit in the future, and negatively impact their reputations. These are myths, see our Top 10 Myths about bankruptcy for more information.
When individuals make decisions based on myths, they limit their options and will likely face a significant and overwhelming amount of debt. Unfortunately, a large number of student loan borrowers are simply unaware of the opportunities available to them.
What to do about your Student Loan Debt
Are you in over your head with your student loans? If so, please contact one of our Bond & Botes law offices by calling 1-877-581-3396 and schedule an absolutely free remote consultation so an attorney can discuss your financial situation to see if we can help!
