Student Loan Relief Extended
The pandemic has brought economic distress to many Americans, with student loan payments at the top of the list of stressors. The relief plan currently in place has an expiration date of December 31, leaving many who carry student loan debt with the prospect of an unhappy holiday. Fortunately, that relief has been extended for a short time.
New Deadline
On Friday, December 4th, Betsy DeVos, the current Education Secretary, announced that the student loan payment pause will continue for another month, with the expiration date for this relief now set for January 31, 2021. While a welcome change, it does not offer much in the way of an extended relief package.
Limits on Loans
This payment freeze only applies to federal loans and does not cover any privately acquired loans taken out to pay for college. This relief is available for PLUS loans taken out by parents, however.
What to Expect
There is still no definitive answer from Congress on whether a second round of stimulus will be issued, and with the pandemic still raging, many people are increasingly concerned about the future as we head into 2021. The change in administration is also a factor to consider, since President-Elect Joe Biden has vowed to make changes to the student loan program, including increasing the amount of available Pell Grants, eliminating debt up to $10,000 as COVID-19 relief and erasing loans used for undergraduate tuition if the borrower makes less than $125,000 per year. Whether or not these are just campaign promises remains to be seen.
This unprecedented time has placed unbelievable strain on many of us, and for some, it may seem impossible to see the light at the end of the tunnel. If you are facing difficult financial choices and feel hopeless, the team at Gingold & Gingold is here to help. Call us at (404) 685-8800 or visit us here to schedule a free consultation.
