Before the pandemic, at least 10 million borrowers defaulted or defaulted.
Photo: STEFANI REYNOLDS / Getty Images
Since the US Department of Education suspended federal student loan payments and interest accrual 32 months ago due to the effects of the pandemic on the economy, more than 40 million people have benefited not being obliged to pay a single penny of their debts acquired in advance.
However, at some point they will have to face their financial commitments again, which will lead to a new imbalance for those who have not taken the precaution of saving some or all of the allocated money.
From this perspective, the most expedient thing is to pave the way for the resumption of student loans, which will also be very difficult for you to an administration which, despite having inherited the debt, with the postponement encouraged by Joe Biden, could face a major challenge in resuming the collection of overdue invoices – to call them that in some way -, because before the health crisis at least 10 million borrowers were defaulting or defaulting.
The rising cost of living and inflation have made it more difficult for most households to cover basic expenses, so allocating a part of the budget that debtors have become unaccustomed to complicates their payment prospects.
However, Who has been more responsible and also has sufficient economic resources, has the possibility that as long as the suspension of payments remains, he can make a single payment with the total amount of all these months, as it would be directly injected into the principal they owe and thus their debt would be substantially reduced.
Another option is to open a bank account for some type of financial instrument which in addition to saving also allows them to obtain a certain amount of income from the interest generated in their favour, we are waiting to know the date on which the collection of student loans will resume.
However, various experts point out that if the president continues to support the postponement, perhaps it would be until August next year when harvesting could be resumed.
The point is that For those who fell behind on payments before the pandemic and fail to meet them when they are resumed, the government has extraordinary collection powers and can confiscate them tax refunds, salaries and social security checks, so it’s better not to co-finance yourself and find a way to recover.
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