Baltimore Student loan borrowers have a few more months before payments are made again.
“We conducted our own survey of more than 33,000 people in November and found that 9 out of 10 student loan borrowers were not financially secure enough to resume payments,” said Cody Hunanian, executive director of the Student Debt Crisis Center.
The Student Debt Crisis Center supports the Biden administration’s decision to give borrowers another 90 days of delay until May 1, however, it only applies to certain federal loans owned by the US Department of Education that are not privately owned by banks and credit card companies. , or other lenders.
“Those are not covered by any of the federal pandemic benefits for student borrowers, so these people should contact their lender and see if the company itself is offering any kind of special relief during this time,” Hunanian said.
Scammers are also taking advantage of the confusion surrounding these program changes.
“This letter is from the Department of Education, all student loan forgiveness will be stopped immediately. To be eligible, you must apply within the next 24 hours or you will not be able to reduce your student loan,” according to a voicemail from the Federal Trade Commission.
The Federal Trade Commission (FTC) said this voicemail is a scam targeting unaware borrowers to extend student loan pauses.
And while the Student Debt Crisis Center supports proposals to cancel student debt, borrowers need to start thinking about how to pay off their loans, including enrolling in repayment plans.
“These options can help lower your monthly payments based on your income, so for people who have been particularly hard hit by the pandemic, who have lost their jobs, and faced reduced working hours, there are programs that can help you now and for the next year,” Hunanian said.
In addition to these changes, millions of people will see that their loan service has changed, and more people may temporarily qualify for the Public Service Loan Forgiveness Program, so it’s important to make sure all of your information is up to date with the lender. Including email and address to receive any information and updates regarding your loan.