STUDENT LOANS AND DEBT RELIEF

Student loans and debt relief. The unprecedented speed of job losses in the United States because of the novel coronavirus has left many people unable to manage their debts, including student loans. The Labor Department said 30.5 million people lost their jobs in April. The $2 trillion stimulus relief prompted by the extraordinary economic downturn provided some financial relief for federal student loan borrowers. But is it enough ?  House Democrats have introduced a $3 Trillion stimulus package, the Health and Economic Recovery Omnibus Emergency Solutions (HEROES ACT), which extends and expands debt relief to federal and private student loan borrowers. Student loans and debt relief.

Here are some common questions and answers asked during the pandemic. What’s in the HEROES Act ?  This bill would extend the relief provided for federal borrowers in the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act automatically suspended interest, payments and involuntary collection until Sept. 30 for most people with federal student loans. The Heroes Act would extend the payment break and interest waiver for another year to Sept. 30, 2021. The proposed legislation would also forgive up to $10,000 in debt for federal and private student loan borrowers. But this stimulus aid package had a difficult road to passage.

“Republicans rejected the legislation even before they saw it, describing it as a liberal wish list that would never go anywhere in the Republican led Senate,” reported the Washington Post’ Erica Werner. ” “The massive new Democratic bill was assembled by House Speaker Nancy Pelosi and her top lieutenants without input from Republicans or the Trump Administration. It’s less an opening bid in a bipartisan negotiation than an expression of House Democrats priorities that they hope will resonate with the public as the nation suffers through the worst economic calamity since the Great Depression.

Which student loans qualify for a payment pause ?  To find out if your loans qualify, ask your student loan servicer, or go to Student Aid.gov/login  You can also call 800-433-3243.  For Tax Resolution Services call 1-888-689-7861