[Craig]

FOR MILLIONS OF STUDENT LOAN BORROWERS HOPING FOR RELIEF FROM WASHINGTON, THINGS MIGHT GET MORE COMPLICATED IN THE MONTHS AHEAD. THE BIDEN ADMINISTRATION’S ONE YEAR GRACE PERIOD, OF THE COVID ERA DELAY ON REPAYMENTS, HAS EXPIRED.
DEBTORS, WHO DON’T BEGIN PAYING BACK THEIR STUDENT LOANS, COULD BE HIT WITH A COLLECTION ACTION. FINANCIAL EXPERTS SAY IT GENERALLY TAKES BETWEEN 9 AND 12 MONTHS FOR SOMEBODY, WHO IS LATE ON A LOAN PAYMENT,TO FACE THE CONSEQUENCES OF DEFAULTING.
PEOPLE WHO DEFAULT ON THEIR STUDENT LOANS COULD FACE GARNISHMENT OF THEIR WAGES, LOSS OF ELIGIBILITY TO GET A MORTGAGE AND CREDIT RATING DIFFICULTIES.
A FEDERAL JUDGE BLOCKED PRESIDENT BIDEN’S SECOND ATTEMPT AT MASS DEBT CANCELLATION. THE U.S. SUPREME COURT SHOT DOWN HIS FIRST ATTEMPT LAST YEAR. IN ADDITION, THE BIDEN ADMINISTRATION’S EFFORTS TO OFFER LOAN-REPLAYMENT PLANS WITH LOWER MONTHLY PAYMENTS, HAVE ALSO BEEN TIED UP IN THE COURT.
EXPERTS SAY SAY ANYBODY IN DEEP STUDENT LOAN DEBT AT THE FEDERAL OR STATE LEVEL, SUCH AS THROUGH A PERKINS LOAN, OR A FEDERAL FAMILY EDUCATION LOAN, CAN TRY TO FILE WHAT IS CALLED AN ECONOMIC HARDSHIP DEFERMENT. https://studentaid.gov/sites/default/files/EconomicHardshipDeferment.pdf
IT’S MUCH LIKE A TAX RETURN FORM IN WHICH THE FILER ANSWERS VARIOUS QUESTIONS ABOUT THEIR ABILITY, OR LACK OF ABILITY, TO PAY, SUCH AS INCOME, WORK SITUATION AND FAMILY SIZE..
ANYBODY **OUT OF WORK** CAN FILE A SIMILAR FORM CALLED AN UNEMPLOYMENT DEFERMENT REQUEST.
ANOTHER OPTION, WOULD BE TO FILE FOR STUDENT LOAN FORBEARANCE. IN THIS CASE, THE LOAN PROVIDER DECIDES WHETHER TO GRANT THE PERSON-IN-DEBT A CHANCE TO MAKE NO PAYMENT OR A SMALLER PAYMENT FOR A PERIOD UP TO ONE YEAR, BEFORE THE CASE IS REVIEWED AGAIN.
BORROWERS SHOULD RECEIVE MULTIPLE NOTICES BEFORE THEY GO INTO DEFAULT OR DELINQUENCY. ADD TO THAT PRESIDENT-ELECT DONALD TRUMP SAID ON THE CAMPAIGN TRAIL HE WOULD TRY TO ROLL BACK THE BIDEN ADMINISTRATION’S EFFORT TO FORGIVE STUDENT LOAN DEBT, CALLING IT ILLEGAL,