Lisa Robertson, Author at Parachute

Federal Student Loan Collections Have Resumed – Act Now!

This is an important update regarding federal student loans. The pause on collections for defaulted federal student loans has ended.

What’s Happening Now:

Effective Monday, May 5, 2025, the U.S. Department of Education’s Office of Federal Student Aid (FSA) resumed collecting on defaulted federal student loans. This impacts over 5 million borrowers.

Treasury Offset Program: The government can now withhold federal payments, including tax refunds and Social Security benefits, if you have defaulted student loans.
Administrative Wage Garnishment: Later this summer, administrative wage garnishment will resume, allowing up to 15% of your disposable income to be withheld.

If You’re in Default – Act Immediately!

The FSA is urging all borrowers in default to take immediate action to avoid these involuntary collection measures. You should receive an email from FSA in the next two weeks with details on how to contact the Default Resolution Group. They can help you explore options like:

Setting up a monthly payment plan.
Enrolling in an income-driven repayment (IDR) plan.
Signing up for a loan rehabilitation program to get your loan back in good standing.

How Parachute Can Help (NY Residents):

For New York residents, Parachute offers free, confidential student loan counseling. Our counselors can help you understand your options, navigate the repayment process, and develop a plan to manage your student loan debt, especially if you’re in default. Contact us at (800) 926-9685 to schedule a session.

For those in other states, please visit StudentAid.gov for information on repayment options. You can also search for a local non-profit organization in your region that provides student loan counseling, such as those affiliated with the National Foundation for Credit Counseling (NFCC).

Taking proactive steps now can help you avoid serious financial consequences.

Budget, Parachute Services

FREE June 24 Virtual Workshop – “Have a Blast on a Budget: Summer Savings Hacks”

Have a Blast on a Budget: Summer Savings Hacks

NEW TIME!! Tuesday, June 24 from 6:00 p.m. – 6:30 p.m.

Don’t let rising temperatures lead to runaway spending! Discover smart ways to save on food, entertainment, and even your utility bills.

We’ll show you how to make small changes that add up to big savings. Unlock a summer that’s memorable and budget-friendly!

Register at: https://bit.ly/parachutesummer

Spread the word! Share the attached flyer with your employees, friends, family, clients – anyone who could benefit from these valuable tips.

See you there!

P.S. Don’t miss out on this FREE opportunity to take charge of your finances!

All workshop attendees will be entered to win a free Parachute appointment!

Would you like to meet one-on-one with one of our Financial Counselors to talk specifically about your budget? Check out our Financial Coaching Session https://parachutecreditcounseling.org/services/credit-budget-counseling/#financial-coaching or call 716-712-2060.

Parachute Services, Student Loans

Student Loan Delinquencies Surge, Threatening Credit Scores and Financial Stability

A new report from the Federal Reserve Bank of New York’s Center for Microeconomic Data reveals a sharp increase in student loan delinquencies, raising concerns about the financial health of millions of borrowers.

The report, which includes data updated through the first quarter of 2025, shows that after a five-year pause, student loan delinquency rates have returned to pre-pandemic levels. Nearly one in four borrowers (23.7%) with a payment due are now behind on their student loans. This surge is attributed to the expiration of pandemic-era protections that temporarily halted loan payments and reporting of delinquencies to credit bureaus.

The consequences of this rise in delinquencies are significant. The report highlights that borrowers who have become newly delinquent are experiencing substantial declines in their credit standing. Over 2.2 million borrowers saw their credit scores drop by more than 100 points, and over one million saw decreases of at least 150 points. This credit score damage will lead to:

Higher borrowing costs for future loans (auto, mortgage, etc.)
Difficulty obtaining new credit cards
Challenges securing housing and employment

The findings underscore the vulnerability of borrowers, particularly those over 40 and those with already subprime credit scores, who now face increased financial hardship due to these delinquencies.

“The resumption of federal student loan collections marks a significant and potentially destabilizing event for millions of borrowers who have already faced economic hardship. The end of this long-standing pause demands immediate attention and action from borrowers to understand their repayment options and avoid the severe consequences of default, including wage garnishment and the withholding of essential federal benefits,” says Noelle Carter, President & CEO of Parachute Credit Counseling.

For those facing student loan challenges, Parachute Credit Counseling offers free, confidential support. Our experienced counselors advocate for borrowers, helping them understand their options with the Default Resolution Group and assisting them in choosing the path that aligns with their best interests. For more information, borrowers can call 716-712-2060 or visit https://parachutecreditcounseling.org/.

Student Loans

From Chaos to Clarity: A Live Briefing for Student Loan Borrowers

We are excited to invite you to a FREE student loan webinar in collaboration with Education Debt Consumer Assistance Program (edcap) on Thursday, May 22, 2025 at 12:00PM ET!

Get the latest updates and expert advive to help you manage and eliminate your student loan debt. Plus, a live Q&A with student loan experts!

Together, we’ll go over:

An overview of student loan repayment options.
How Income-Driven Repayment (IDR) plans work.
Steps to qualify for Public Service Loan Forgiveness (PSLF).
Other forms of federal student loan relief.
The newest changes and developments in the federal loan system.

Please secure your spot and register at: https://www.zoom.us/webinar/register/WN_eZ4MPSKZSMuokRnYxdnKRw#/registration

If you’re in need of one-on-one advice and guidance regarding your student loan situation, Parachute is your resource for free student loan counseling https://parachutecreditcounseling.org/services/credit-budget-counseling/#student-loan-counseling Call us today! 716-712-2060

Budget, Parachute Services

Join us for a FREE Parachute virtual Zoom workshop: Financial Fumbles: 10 Mistakes Sabotaging Your Savings

JOIN US! This workshop will review the top ways we often fumble with our savings. Learn the small behaviors (habits) that can add up to big returns and grow our savings in strong ways PLUS hear about current Bank-On efforts to make banking more accessible.

Financial Fumbles: 10 Mistakes Sabotaging Your Savings

NEW TIME!! Wednesday, May 14 from 5:30 p.m. – 6:00 p.m.

Register now! Spots are limited!

Register at: https://bit.ly/parachutefumbles

Spread the word! Please share with your employees, friends, family, clients – anyone who could benefit from these valuable tips.

See you there!

P.S. Don’t miss out on this FREE opportunity to take charge of your finances!

Parachute Services

Pennsylvania Here We Come!

Parachute Credit Counseling is proud to announce we’ve expanded our service area to include Pennsylvania!

As a non-profit credit counseling agency operating for 60 years, we are very excited to be able to bring our valuable Debt Management Plan and Financial Counseling Services to the state of Pennsylvania!

Pennsylvania is now added to the growing list of states we can serve:

Alaska

Arkansas

Florida

Georgia

Hawaii

Illinois

Louisiana

Massachusetts

New Mexico

New York

North Carolina

Ohio

Oklahoma

Pennsylvania

South Dakota

Tennessee

Texas

Washington

Washington DC

West Virginia

Wyoming

In addition to debt management, Parachute offers a comprehensive range of financial counseling services. Our services include budgeting assistance, credit building strategies, and guidance on homeownership. Nationally certified counselors provide expert support, working closely with clients to achieve financial stability. Whether individuals are struggling with debt, seeking to improve their credit score, or planning for a major purchase, Parachute can help. We encourage everyone to take proactive steps towards financial well-being. For individuals looking for more information or to schedule a consultation, call 716-712-2060 or visit https://parachutecreditcounseling.org/