Insights From Resolvly LLC: 5 Takeaways From The Latest Student Loan Relief Extension
In early August 2021, the Biden administration announced plans to expand its current student loan relief program. Prior to this announcement, the current moratorium was due to end in September. However, executives have reduced this date to January 31, 2022. to resolve The team highlighted five key points from this latest expansion below.
1. There is no other Extension
According to 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 should be ready to start repaying in February 2022.
2. Loan manager is likely to change by early 2022
The current administration has not explained 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, FedLoan Servicing and Granite State Management are two of the largest federal student loan managers. These two entities have contracts with the Ministry of Education until the end of the year.
Unfortunately, neither of them plans to renew the contract. This means that millions of accounts will be transferred to the new loan manager.
3. Frozen months should be counted as eligible for loan cancellation.
Perhaps the best news related to this extension is that the suspended months still count towards various loan cancellation programs. These months are counted as if the debtor was paying to determine eligibility for a loan forgiveness. The suspended month is also due to the loan rehabilitation program.
4. The federal student loan is the only debt covered
The biggest downside to 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:
â Perkins loan
â Private student loan
â FFEL program loan in good condition
However, the default FFEL loan is protected by the latest extension. If you are struggling with private student loan debt, you will need to look for other remedies.
Perhaps the best way to deal with private student loan debt is to seek evidence-based debt settlement. This approach is safe and effective because you need to work with an experienced debt resolution lawyer. 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 revoked completely. Currently, there are no concrete plans to achieve this goal.
The administration continues to review the legality of the administrative measures to cancel the loan, but has made no further announcements on its progress.
Meanwhile, those with federal student loan debt will have to hold their breath and wait until the rest of the moratorium month ends. Those with a private loan may be better served by seeking a lawyer to settle their debt.
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Insights From Resolvly LLC: 5 Takeaways From The Latest Student Loan Relief Extension Insights From Resolvly LLC: 5 Takeaways From The Latest Student Loan Relief Extension