With student loan repayments set to begin in October, do borrows have to begin making payments?
and it won’t hurt their credit scores. Interest will resume in September, however, and it will accrue whether borrowers make payments or not. Biden reiterated that it is not the same as the student loan pause, adding that “if you can pay your monthly bills, you should.”
To determine whether deferment or forbearance are good options for you, contact your loan servicer. One thing to note: Interest still accrues during deferment or forbearance. Both can also affect future loan forgiveness options. Depending on the conditions of your deferment or forbearance, it may make sense to continue paying the interest during the payment suspension.
In November, the Justice Department announced a process with new guidelines for students with federal loans who are unable to pay. Under the new guidance, debtors will fill out an “attestation form,” which the government will use to determine whether or not to recommend a discharge of debt. If borrowers’ expenses exceed their income and other criteria are met, the government will be more likely to recommend a full or partial discharge of loans.
The process of negotiated rulemaking requires a period for written feedback from the public, a public hearing and negotiating sessions. Some advocates had been urging Biden go this route all along, and the White House says it’s confident the plan will work. But it’s almost certain to face legal challenges. The Education Department has used the Higher Education Act to cancel student loans before, but never at the scale being discussed now. Backers including Sen. Elizabeth Warren have said the legal authority is clear, but lawyers for the Trump administration concluded in 2021 that mass student loan forgiveness was illegal.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
White House aides are told Bidens have six grandkids — leaving out disgraced son Hunter’s totCritics have been quick to jump on what they call a disgraceful situation for a president who prides himself on being devoted to his family, with some calling the Bidens “monsters” for …
Read more »
The Bidens bullied Hunter Biden's ex-wife and daughter out of their last namesNavy Joan, the 4-year-old daughter Hunter Biden fought to deprive of his famous family's name, is not the first female relative that the president has thrown under the bus for personal gain. Joe Biden, who repeatedly says he has six grandchildren instead of the accurate count of seven, once…
Read more »
We need to talk about the daughter the Bidens rejectA judge ordered Hunter Biden to take a paternity test, which confirmed the child is his.
Read more »
Resale clothing chain Uptown Cheapskate to open new store in Sugar Land by OctoberUtah-based resale clothing chain Uptown Cheapskate is expected to open a location in...
Read more »
UK financial watchdog reminds crypto firms of October deadline for marketing complianceThe Financial Conduct Authority of the United Kingdom sent letters to crypto firms reminding them they had until Oct. 8 to be in compliance with requirements on promotions.
Read more »
The space telescope surveying the entire universe to understand dark matter and dark energyThe telescope is scheduled to begin its observations in October.
Read more »