The federal government offered 40 million student loan borrowers relief during Covid as part of the CARES package. That relief will end in September with no renewal plans in the works. This means that millions of Americans will be sent student loan bills in October and will resume paying those loans immediately.
Aside from the massive number of Americans that will suddenly have one more bill to pay, there’s a fundamental issue with the expiration of the student loan relief package. Covid-19 is still rampant in the United States, and people that have lost their jobs have not found a replacement or even temporary (in some cases) employment.
Regardless of employment status, if you were able to defer your loans as part of the CARES Act, you will likely have to begin paying those loans once again in October. Asking 40 million borrowers to start paying loans back will likely result in several bankruptcies, financial hardships, and business loss.
We want you to know that these student loan payments are coming, and you’ll have to begin paying them again soon. If you do not think that you can make the payments, you do have a few options, including the following:
Start putting that first payment aside now. If you are currently employed and can begin saving money to put towards your student loan payments, now is the time to start.
Contact your lender and try to work out a repayment plan.
Many are hoping that the government extends the student loan payment deferral plan, but that doesn’t appear to be at the top of the CARES extension list. In case you have to begin paying your loans again, make sure you have a solid plan. Contact us today to see if we can help.