As long as the coronavirus continues its destructive path, sickening people, taking jobs, and keeping the economy down, people will continue to be overwhelmed financially by exorbitant medical bills or by simply trying to make ends meet without having a job. For people who had a lot of debt hanging over their heads before the pandemic hit, this time is particularly alarming.
Student debt in the U. S. has reached a staggering $1.6 Trillion and no matter the outcome of the pandemic, that number isn’t going away anytime soon. Thousands of Americans have found themselves drowning in a dark sea of student loan debt with few options for relief.
Fortunately, there have been a few changes that have been made to help borrowers during the coronavirus pandemic. Beginning on March 13th and ending on September 30th, as part of the CARES Act, interest on student loans was set to 0% and federal student loan servicers suspended all payments. However, this action only applies to federal loans, not to private, non-federal ones that may be owned by banks, credit unions, schools, etc. Many private lenders are offering forbearance and other payment options but borrowers have to make the arrangements directly. Federal loans require no action by the borrower.
The suspension is a relief but what happens after September 30th? The debt will still be there and will need to be paid back.
At Miller, Hollander & Jeda, we have solutions for borrowers who are unable to keep up with their student loan debt that can make their loan payments more manageable or in some cases, eliminate them altogether.
Loan Forgiveness―Under specific circumstances, student loans may be forgiven for teachers, healthcare workers, government employees, Americorps, Peacecorps, and some public service jobs.
Loan Consolidation―This allows borrowers the opportunity to put their student loans into one monthly payment that is more affordable.
Loan Rehabilitation―In loan rehabilitation, the borrower pays an agreed-upon monthly payment which is determined by their current income. Repayment lasts for 9 months, and if all payments are made on time during that period, the remainder of the loan will be forgiven and considered paid.
Student loan modification can save you money, avoid wage garnishment, and allow you to take control of your financial situation once and for all. It can put you in a better situation to help you financially get a new start after the pandemic is over and everything begins again. You can begin again too.
At Miller, Hollander & Jeda, we handle everything for you. We’ve streamlined the process to make it easy and straightforward, and most of it can be done remotely from your home. For more than 35 years, our attorneys have been helping people put financial difficulties behind them and get started on a new, more secure financial life.
If you’re unable to keep up with your high student debt, call Miller, Hollander & Jeda today for a free consultation at (239)775-2000 and find out if you qualify for one of our student loan modification options.