MORE Student Loan NEWS:

45% of 18-35 Year Old NYS Residents Have Student Loan Debt

Parachute Credit Counseling Offers FREE Assistance and Counseling

Bad News: Proposed Loan Forgiveness Program Struck Down by Supreme Court

Payments to Resume on October 1st

Good News:  804,000 Borrowers Will Have Their Loans Automatically Discharged via Income Driven Repayment (IDR) Plans—Program Extended; Parachute Can Help

NEW SAVE Repayment Plan Announced: Most Affordable Plan Ever Created

12 Month Grace Period: Borrowers Will Not Be Penalized for Missing Payments

Millions of Americans will soon resume paying their student loans, whether they want to or not. In their recent 6-3 decision, the Supreme Court rejected the much hoped for, yet controversial, student loan forgiveness proposal.

This means that interest will once again begin accruing on outstanding loan balances this September. Then, on October 1st, payments resume and 44 million Americans will be paying an average of $210 to $314 each month toward their loan balances (according to Wells Fargo).

However, there is hope that there may be other methods to facilitate student loan forgiveness and the U.S. Department of Education is hard at work on various strategies. 

Late last week, the Department of Education announced a few positive steps, beginning with the news that 804,000 borrowers will have $39 billion in Federal loans automatically discharged due to Income Driven Repayment (IDR) Plan/IDR Account Adjustment. This program had disappointed many until very recently when great effort was put into fixing it. More info coming later in this release: many people could benefit so it is suggested that everyone look into it.

The Department of Education also announced the SAVE Plan (Saving on a Valuable Education) which they have called “the most affordable repayment plan ever created.” This new plan will cut monthly payments to $0 for millions of borrowers making $32,800 or less ($67,500 for a family of four) and save all other borrowers at least $1,000 per year. Additionally, it will stop runaway interest that leaves borrowers owing more than their initial loan.

And in a final announcement, in an effort to ease the transition to monthly payments, President Biden and the U.S. Department of Education stated that there will be a 12-month “on-ramp” period starting in October where “missed, partial, or late payments will not lead to negative credit reporting, default, or loans being sent to collection agencies.” Additionally, missed payments will not count toward loan forgiveness under any of the income-driven repayment plans or Public Service Loan Forgiveness.

We are currently facing a unique, unprecedented situation that will significantly impact millions—along with the entire economy–over the next few years.

Since March 2020, borrowers have had a pause in their student loan payments—with no interest accruing–due to the pandemic. This break let those with loans stay current on other bills and obligations, pay down other debt, or for some, build up their savings.  The resumption of loan payments is expected to have an adverse economic impact with a slow down in overall spending and an increase in defaults and forebearances. Never in the history of the federal student loan system have over 40 million borrowers simultaneously resumed repayment after a three-year hiatus.

According to the Consumer Financial Protection Bureau (CFPB), about 20% of student loan borrowers have risk factors that indicate they could struggle when payments resume. More than 1 in 13 student loan borrowers are currently behind on other payment obligations, a rate higher than before the student loan pause started in March 2020 during the pandemic.

Student loan borrowers owe more in other debts now as well. The CFPB found that median scheduled payments on other debt obligations have increased by 24% for borrowers whose student loans will soon become due. In percentage terms, those increases are especially notable for younger borrowers—a whopping 252% increase from $65 to $229.

Income Driven Repayment (IDR) Plan/IDR Account Adjustment

As mentioned earlier, there are positive options available for student loan borrowers. One of these is the the Income Driven Repayment (IDR) Plan/IDR Account Adjustment which was recently extended until December 31, 2023. Income Driven Repayment (IDR) Plans allow borrowers to make payments on their federal student loans according to a formula based on their income and family size—the payments are deliberately meant to be smaller. Ostensibly this program had been in place prior to the pandemic but there were major issues with it, resulting in few people actually receiving the proper help to enroll in this program.

Last year, the U.S. Department of Education implemented IDR Account Adjustment to help student loan borrowers benefit from the program as it was initially intended. The Department worked to remove the confusion surrounding the program, making it more accessible and available to student loan borrowers. It also conducted a one-time adjustment of IDR payments to address past inaccuracies and improved their previous subpar tracking procedures.

On July 14th, the Department of Education began notifying 804,000 borrowers that they  have a total of $39 billion in federal student loans that will be discharded in coming weeks. In total, more than $116.6 billion in student loan forgiveness for more than 3.4 million borrowers has been approved.

In final good news, there is no application required for the IDR Account Adjustment. Borrowers will automatically receive the benefits. A critical element, however, is that borrowers with non-Direct and non-government-held federal student loans need to consolidate those loans into the federal Direct consolidation program in order to benefit from the IDR Account Adjustment.

The U.S. Department of Education advises: “Borrowers who have commercially managed FFEL, Perkins, or Health Education Assistance Loan Program loans should apply for a Direct Consolidation Loan by the end of 2023 to get the full benefits of the one-time account adjustment.” Additional info available here: https://studentaid.gov/announcements-events/idr-account-adjustment

Parachute Credit Counseling—formerly known as Consumer Credit Counseling Service of Buffalo (CCCS)— recently announced that they are now offering free Student Loan Counselingincluding assistance with the IDR Account Adjustment process and loan consolidation–throughout the eight counties of Western New York along with expert strategies for attaining financial stability.

The experienced, certified financial counselors at Parachute will help WNY residents consolidate their loans and review other potential relief options and changes to existing programs available to help borrowers reduce or eliminate their debt. Now is the time for borrowers to seek free and unbiased counseling. Call 716-712-2060 or visit https://parachutecreditcounseling.org/ for more information on our Student Loan Counseling Program and other financial counseling services we provide.

Student Loan Update

45% of 18-35 Year Old NYS Residents Have Student Loan Debt

Bad News: Proposed Loan Forgiveness Program Struck Down by Supreme Court

Payments to Resume on October 1st

Good News: 12 Month Grace Period: Borrowers Will Not Be Penalized for Missing Payments

Income Driven Repayment (IDR) Plan Adjustment Extended BUT Help May Be Needed

Parachute Credit Counseling Offers FREE Assistance and Counseling, can help with IDR

Millions of Americans will soon resume paying their student loans, whether they want to or not. In a 6-3 decision on June 30th, the Supreme Court rejected the much hoped for, yet controversial, student loan forgiveness proposal.

There is hope that there may be other methods to facilitate student loan forgiveness but for now, there is much disappointment as interest will once again begin accruing on loan outstanding balances this September. Then, on October 1st, payments resume and 44 million Americans will be paying an average of $210 to $314 each month toward their loan balances (according to Wells Fargo).

In an effort to ease the transition to monthly payments, President Biden and the U.S. Department of Education stated that there will be a 12-month “on-ramp” period starting in October where “missed, partial, or late payments will not lead to negative credit reporting, default, or loans being sent to collection agencies.”

For the past three years, borrowers have had a pause in their student loan payments—with no interest accruing–due to the pandemic. This break let those with loans stay current on other bills and obligations, pay down other debt, or for some, build up their savings.  The resumption of loan payments is expected to have an adverse economic impact with a slow down in overall spending and an increase in defaults and forebearances. Never in the history of the federal student loan system have over 40 million borrowers simultaneously resumed repayment after a three-year hiatus.

According to the Consumer Financial Protection Bureau (CFPB), about 20% of student loan borrowers have risk factors that indicate they could struggle when payments resume. More than 1 in 13 student loan borrowers are currently behind on other payment obligations, a rate higher than before the student loan pause started in March 2020 during the pandemic.

Student loan borrowers owe more in other debts now as well. The CFPB found that median scheduled payments on other debt obligations have increased by 24% for borrowers whose student loans will soon become due. In percentage terms, those increases are especially notable for younger borrowers—a whopping 252% increase from $65 to $229.

Income Driven Repayment (IDR) Plan/IDR Account Adjustment

Although student loan forgiveness is not imminent, there are positive options available for student loan borrowers. One of these is the the Income Driven Repayment (IDR) Plan/IDR Account Adjustment which was recently extended until December 31, 2023. Income Driven Repayment (IDR) Plans allow borrowers to make payments on their federal student loans according to a formula based on their income and family size—the payments are deliberately meant to be smaller. Ostensibly this program had been in place prior to the pandemic but there were major issues with it, resulting in few people actually receiving the proper help to enroll in this program.

Last year, the U.S. Department of Education implemented IDR Account Adjustment to help student loan borrowers benefit from the program as it was initially intended. The Department worked to remove the confusion surrounding the program, making it more accessible and available to student loan borrowers. It also conducted a one-time adjustment of IDR payments to address past inaccuracies and improved their previous subpar tracking procedures.

In final good news, there is no application required for the IDR Account Adjustment. Borrowers will automatically receive the benefits. A critical element, however, is that borrowers with non-Direct and non-government-held federal student loans need to consolidate those loans into the federal Direct consolidation program in order to benefit from the IDR Account Adjustment.

The U.S. Department of Education advises: “Borrowers who have commercially managed FFEL, Perkins, or Health Education Assistance Loan Program loans should apply for a Direct Consolidation Loan by the end of 2023 to get the full benefits of the one-time account adjustment.” Additional info available here: https://studentaid.gov/announcements-events/idr-account-adjustment

Parachute Credit Counseling—formerly known as Consumer Credit Counseling Service of Buffalo (CCCS)— recently announced that they are now offering free Student Loan Counseling throughout the eight counties of Western New York along with expert strategies for attaining financial stability.

The experienced, certified financial counselors at Parachute will help WNY residents consolidate their loans and review other potential relief options and changes to existing programs available to help borrowers reduce or eliminate their debt. Now is the time for borrowers to seek free and unbiased counseling.

Call 716-712-2060 or visit https://parachutecreditcounseling.org/services/ for more information on our Student Loan Counseling Program and other financial counseling services we provide.

Good News & Bad News with Student Loans: Income Driven Repayment Plan Adjustment Extended; Student Loan Forgiveness Still Blocked By Lawsuit

Loan Consolidation Required–Parachute Credit Counseling Offers FREE Assistance and Counseling

While student loan forgiveness remains on hold for the forseeable future, Income Driven Repayment (IDR) plans are an available opportunity designed to financially assist borrowers and to ultimately reform the student loan system. These plans allow borrowers to make payments on their federal student loans according to a formula based on their income and family size—the payments were deliberately meant to be smaller. Ostensibly this program had been in place but there were major issues in it, resulting in few people actually receiving the proper help.

Last year, IDR Account Adjustment was announced to help student loan borrowers benefit from the program as it was initially intended. The Department of Education will conduct a one-time adjustment of IDR payments to address past inaccuracies and permanently fix IDR payment counting by reforming ED’s IDR tracking procedures going forward.

This past week, the IDR Account Adjustment was extended from May 1, 2023 to December 31, 2023.

The IDR Account Adjustment is further planned to remove the confusion surrounding this program and make it more accessible and available to student loan borrowers.

Other Changes include:

  • A retroactive credit toward a borrower’s 20- or 25-year student loan forgiveness term, even if they are not presently in an IDR plan.
  • A credit toward Public Service Loan Forgiveness for qualifying borrowers.
  • A credit for Parent PLUS borrowers.

There is no application required for the IDR Account Adjustment. Borrowers will automatically receive the benefits.

A critical element, however, is that borrowers with non-Direct and non-government-held federal student loans need to consolidate those loans into the federal Direct consolidation program in order to benefit from the IDR Account Adjustment.

The U.S. Department of Education advises: “Borrowers who have commercially managed FFEL, Perkins, or Health Education Assistance Loan Program loans should apply for a Direct Consolidation Loan by the end of 2023 to get the full benefits of the one-time account adjustment.” Additional info available here: https://studentaid.gov/announcements-events/idr-account-adjustment

Parachute Credit Counseling—formerly known as Consumer Credit Counseling Service of Buffalo (CCCS)—is the only local nonprofit organization with expertise in student loan consolidation. Parachute recently announced that they are now offering free Student Loan Counseling throughout the eight counties of Western New York along with expert strategies for attaining financial stability.

While Long Awaited Student Loan Forgiveness is Blocked By Lawsuit, Parachute Credit Counseling Offers Encouragement and FREE Student Loan Counseling

While Long Awaited Student Loan Forgiveness is Blocked By Lawsuit, Parachute Credit Counseling Offers Encouragement and FREE Student Loan Counseling

The Supreme Court will hear arguments for and against this loan cancellation plan on February 28, 2023

The financial futures of nearly 43 million borrowers across the country are in limbo as the Supreme Court considers the legality of President Biden’s student debt forgiveness program.

President Biden’s student loan forgiveness plan, announced in 2022–which provides up to $20,000 in relief to millions of borrowers–faces legal challenges. While many Americans were happy with the new loan forgiveness plan, there is concern that without the root causes of the student debt crisis addressed, there will be no fundamental changes made to a system in great need of repair. Most people on all sides of the issue agree that the present system is broken and will need legislation to fix it. Even without further and far reaching actions at this point, if allowed, student loan forgiveness will still make a big impact among borrowers who are low-income or didn’t finish college and are stuck paying off a loan.

Parachute Credit Counseling—formerly known as Consumer Credit Counseling Service of Buffalo (CCCS)—announced that it is now offering free Student Loan Counseling throughout the eight counties of Western New York along with expert strategies for attaining financial stability. Although payments on federal student loans have been suspended since March 2020, with interest-free relief, they will resume later this year so it is time for all to plan. Despite the current uncertainty, other relief options and changes to existing programs will be available to help borrowers reduce or eliminate their debt. Now is the time for borrowers to seek free and unbiased counseling to understand their options.

Parachute has operated the only Student Loan Counseling Program in Western New York for the past ten years. Right now, the national total student loan debt, including federal and private loans, sits at $1.75 trillion.

About 1 in 6 adults in America holds federal student loan debt. A typical undergraduate finishes school with nearly $25,000 of debt and a monthly payment of $460, which takes an average of 20 years to pay back while accruing $26,000 just in interest. Tuition fees have nearly tripled since 1980, outpacing inflation and wage growth. Student loan repayment is a critical issue that needs much direction.

The situation at this time is: millions of borrowers have already been approved for loan forgiveness, but the government is powerless to act because two federal courts issued nationwide injunctions prohibiting any debt relief under the plan. Most legal analysts expect the Supreme Court’s conservative supermajority to side against the administration, preventing the government from forgiving a cent of student loan debt. There is a real chance, however, that a majority may instead find that the plaintiffs—a group of red states and two disgruntled borrowers—lack standing to sue, which would allow the program to move forward. SHIRIN ALI, FEB 26, 2023—SLATE

While we wait for an answer…Parachute encourages residents to join our FREE Student Loan Counseling Program, staffed by experienced, certified financial counselors.  Call 716-712-2060 or visit https://parachutecreditcounseling.org/  for more information on our program and other financial services we provide.

Parachute Credit Counseling Receives Major Grant From the Community Service Society to Join the EDCAP Network – Will Offer FREE Student Loan Counseling

Parachute Credit Counseling Receives Major Grant From the Community Service Society to Join the EDCAP Network 

Will Offer FREE Student Loan Counseling

At a Time When Long Awaited Student Loan Forgiveness is Blocked By a Lawsuit

Parachute Credit Counseling—formerly known as Consumer Credit Counseling Service of Buffalo (CCCS)—is now offering free Student Loan Counseling throughout the eight counties of Western New York. Right now, the national total student loan debt (including federal and private loans) sits at $1.75 trillion.

Parachute has operated the only Student Loan Counseling Program in Western New York for the past ten years. Student loan repayment has long been an obstacle, particularly for younger people. Forty-five percent of New York’s 18–35-year-olds carry student loan debt with an average balance of $28,950 and monthly payment of $460. It takes 20 years, on average, to pay off loans accruing $26,000 just in interest.

In welcome news, the Community Service Society of New York (CSS) awarded $100,000 to Parachute to join its Education Debt Consumer Assistance Program (EDCAP) Network. EDCAP helps New Yorkers with student debt to navigate the student loan repayment system and regain financial health. The New York State Department of Financial Services will oversee this grant which comes at “a critical time as borrowers navigate the complex student loan repayment system, try to benefit from the latest relief available, and prepare for payment resumption,” said Carolina Rodriguez, EDCAP’s program director.

President Biden’s student loan forgiveness plan, which provides up to $20,000 in relief to millions of borrowers, faces legal challenges. The Supreme Court will hear arguments for and against this loan cancellation plan on Feb. 28, 2023. Although payments on federal student loans have been suspended since March 2020, with interest-free relief, they will resume later this year. Despite this uncertainty, other relief options and changes to existing programs will be available to help borrowers reduce or eliminate their debt. Now is the time for borrowers to seek free and unbiased counseling to understand their options.

Parachute is here to help! Our FREE Student Loan Counseling Program is staffed by experienced and certified financial counselors who are ready to assist residents of Western New York with their student loan issues.  Our new partnership with EDCAP, will allow us to serve even more people. Don’t struggle with student loans alone, take control of your finances and reach out to us for help. Call 716-712-2060 or visit our website www.parachutecreditcounseling.org for more information on our program and financial services.

CCCS Launches New, FREE Student Loan Counseling Program; Joins the Education Debt Consumer Assistance Program (EDCAP) Network

CCCS Launches New, FREE Student Loan Counseling Program; Joins the Education Debt Consumer Assistance Program (EDCAP) Network

Will Help Local Borrowers Access Loan Forgiveness & Navigate Complex Student Loan Repayment System

Shortly after the federal government kicked off their student loan forgiveness application process, Consumer Credit Counseling Service (CCCS) announced their newly redesigned, cost free Student Loan Counseling Program to assist local borrowers. While the government’s process is meant to be simple, the complexities of student loans often cause uncertainty, anxiety and frustration.

For the past ten years, CCCS has operated the only Student Loan Counseling Program in Western New York, helping thousands of besieged borrowers tackle what many felt was insurmountable debt. Student loan repayment has long been an obstacle for a significant percentage of the population, particularly for younger people. 45% of 18-35 year olds  currently have student loan debt in New York State. Right now, 2.4 million New York State residents have outstanding loans; a total cumulative debt of over $90 billion.  

In October, the Education Debt Consumer Assistance Program (EDCAP) invited CCCS to join their statewide network after the New York State Legislature increased their funding specifically designated for New York State residents with higher education debt. EDCAP–a program of the Community Service Society of New York (CSS)—and CSS work to make New York State more livable for people facing economic insecurity. CSS created EDCAP as an initiative to help New Yorkers struggling with student debt to navigate the student loan repayment system and regain financial health. In addition to CCCS, EDCAP selected nine other partner organizations throughout the state to serve all of its geographic areas. Seven of these organizations focus on legal services and the other organization is a United Way, indicating that CCCS offers unique and highly regarded services.

CCCS’ collaboration with EDCAP provides CCCS with much needed funding to deliver all student loan counseling services free of charge to WNY residents. EDCAP, in turn, gets a greater and more direct geographic reach into a targeted area. The NYS Department of Financial Services will oversee this project which comes at “a critical time as borrowers navigate the complex student loan repayment system, try to benefit from the latest relief available, and prepare for payment resumption.” EDCAP

A slew of information—including announcements of major, sweeping, long awaited changes to student loan forgiveness that require specific, precise action steps–has steadily flowed recently. We designed our Student Loan Counseling Program to guide borrowers through the complicated process that is frequently intricate and quite possibly thorny. Experienced, Certified Financial Counselors understand that many of those coming for help feel overwhelmed, are confused or just plain over it…and are ready to help all. Our new partnership with EDCAP will allow us to serve even more people. We urge everyone to take positive action that will promote financial stability…Contact us at 716-712-2060 or www.consumercreditbuffalo.org for help with student loans or for any type of financial issues. 

Details of President Biden’s New Student Loan Forgiveness Program; Announces Final Extension to Student Loan Repayment Program

Millions of Americans have waited eagerly over these past two and a half years for student loan forgiveness.

This week, President Biden issued the first of his student loan forgiveness plans. For those earning less than $125,000 a year—or couples with incomes under $250,000–up to $10,000 in federal student loan debt will be forgiven. If individuals used Pell grants to attend college (which are reserved for students with greatest financial need), up to $20,000 in federal student loan debt will be forgiven.  

President Biden also this week officially extended the “student loan payment pause” until December 31st, 2022. Interest rates will remain at 0% until repayments start in January 2023. Biden states that this will be the last extension for student loan payments.

 Mandatory student loan payments as well as interest accrual have been “on pause” since March 13, 2020, the beginning of the pandemic. 98.8% of borrowers did not make payments during this time period but those who did can receive refunds for their payments by calling their loan servicers directly. About 37 million student loan borrowers skipped nearly $200 million in payments during the pause, according to the Federal Reserve Bank of New York.

Immediately after President Biden’s announcement, Consumer Credit Counseling Service (CCCS) encouraged area residents to contact them at 716-712-2060 or www.consumercreditbuffalo.org for help with student loans or for any type of financial issues.  With just about 70% of college graduates leaving school with student loan debt, it is certain that student loans will continue to be part of the landscape for much of the WNY community. Last year, the average per person debt was $35,397 and the typical monthly payment–$393 per month. At current time, nearly 2.4 million New Yorkers have outstanding student loans totaling more than $90 billion combined.

 CCCS operates the only Student Loan Counseling Program in all of Western New York and designed its program to specifically meet the needs of the growing population segment of student loan borrowers. CCCS Certified Financial Counselors understand that many of those coming for help feel overwhelmed with anxiety and fear and often see individuals who have fallen prey to the abundance of unscrupulous companies claiming to help. CCCS urges everyone to take positive action that will promote financial stability: For those interested in any type of help–call 716-712-2060 or visit www.consumercreditbuffalo.org  

Loan Cancellation for Student Loan Borrowers Who Attended Corinthian Colleges

Today, the U.S. Department of Education announced the cancellation of $5.8 billion in federal student loans for 560,000 individuals who borrowed to attend schools owned by Corinthian Colleges, the for-profit college conglomerate that is now defunct.

Corinthian was a notorious repeat offender that defrauded its students and the public over many years.

This loan cancellation would not have been possible without the tenacity of so many individual student loan borrowers harmed by Corinthian’s tactics. Many of them came forward to law enforcement agencies and regulators to detail systemic abuses. Others even had the courage to make their stories public to urge government authorities to act, rather than sitting on the sidelines. Over the last decade, I had the opportunity to speak with many of them to learn about Corinthian’s conduct.

The Consumer Financial Protection Bureau and state attorney general actively pursued Corinthian for its misconduct. The CFPB filed a lawsuit in 2014, obtained a default judgement and secured $480 million in private student loan cancellation in 2015, and won another $183 million in loan cancellation in 2017. In 2016, then-California Attorney General Kamala Harris won a $1.1 billion judgement against Corinthian. Many other state attorneys general across the country also took actions to hold the company accountable for its wrongdoing.

The decision to automatically cancel these loans will be a lifeline to so many Americans whose financial lives were ruined by Corinthian Colleges. While they will never get back the time they lost, they will receive the relief under the law that they have long been owed.


via www.consumerfinance.gov


Most Medical Debt to Be Removed from Credit Reports; Student Loan Repayments Extended Until August 31st

CCCS Announces that Most Medical Debt to Be Removed from Credit Reports; Student Loan Repayments Extended Until August 31st

In a recent and welcomed policy shift, Equifax, Experian, and TransUnion announced that nearly 70% of current medical debt will be removed from credit reports, beginning this summer.

Millions of Americans are saddled with medical debt and the problem continues to grow. Studies from 2021 found that 37% of Americans had medical debt, while 23% did not currently have medical debt but had it in the past. The Consumer Financial Protection Bureau (CFPB) estimates that at this moment, some $88 billion in medical bills sits on 43 million credit reports. Equifax, Experian, and TransUnion Medical maintain reports on more than 200 million people in the U.S. Often, medical bills can be exorbitant and end up on credit reports, ruining credit scores and preventing people from accessing mortgages, car loans and even employment. Many of these people have paid their bills on time for their entire lives until forced into medical debt.

Expanding on their new policies, the three credit reporting firms have further stated that debt that was paid after it was sent to collections will be removed beginning this July. At the present time, even if these debts are paid off, they may remain on a consumer’s credit report for up to seven years. Under the companies’ new guidelines, new unpaid medical debts won’t get added to credit reports for a full year after being sent to collections—and unpaid medical debts of less than $500 will be removed in the first half of 2023. It is expected that the $500 threshold may rise.

These significant changes in the reporting of medical debt are likely due to the ongoing pressure exerted by the Consumer Financial Protection Bureau (CFPB), which earlier in March publicized that it would begin to hold credit reporting firms accountable for reporting erroneous medical debts.

The CFPB has also released research that indicates medical debt is less predictive of a person’s ability to repay than other kinds of loans.

The U.S. credit reporting system—including Equifax, Experian, and TransUnion—plays an inordinate role in determining who gets credit and who doesn’t. This is exacerbated by the fact that consumers have very little control over what is added to their credit reports which rely on information submitted by lenders, collections firms and others.

The CFPB said consumers submit more complaints to the agency about credit-report errors than any other problem and seldom receive any relief. They have made changes in the credit reporting system a major priority and the impact will be felt by consumers as early as this summer.

And while student loan forgiveness is still up in the air, the pause on student loan repayment has been extended through August 2022. Borrowers will not be asked to make payments until after Aug. 31 and interest rates are expected to remain at 0% during that period.

Anxiety was rising for many until the April 5th announcement of the extension of student loan repayments. Prior to the announcement, payments were planned to resume on May 1, 2022. For the past two years, most student loan borrowers have not been required to make payments on their balances and their interest rate has been frozen.

 

White House officials have repeatedly stressed that they would like to resolve the student loan forgiveness issue prior to the resumption of repayments, but discussions are still ongoing.

In a recent survey by the Student Debt Crisis Center, 92% of fully-employed borrowers are concerned about being able to afford their payments due to rising inflation. One in three borrowers claimed they’ve reduced spending on necessities like food, rent and healthcare in preparation for payments to resume.

With about 70% of college graduates leaving school with student loan debt, it is certain that student loans will continue to be part of the landscape for much of the WNY community. Last year, the average per person debt was $35,397 and the typical monthly payment–$393 per month. At current time, nearly 2.4 million New Yorkers have outstanding student loans totaling more than $90 billion combined.

Consumer Credit Counseling Service (CCCS) encourages anyone interested in reviewing or repairing their credit or looking for help navigating student loan repayments to contact them at 712-2060 or visit www.consumercreditbuffalo.org. CCCS is the only provider of student loan counseling in the region and has worked with hundreds of area residents struggling with all kinds of debt over the past several years.

 

Many individuals with credit card debt and/or student loans feel overwhelmed with anxiety and fear as they try to set up payment plans, with some falling prey to the abundance of unscrupulous companies claiming to help. CCCS specifically designed its program to meet the needs of this ever growing population segment.

 

CCCS can help with all financial issues and urges everyone to take positive action that will promote financial stability: For those interested in any type of help–call 712-2060 or visit www.consumercreditbuffalo.org 

Student Loan Payment Pause Extended Through Aug. 31, 2022

On April 6, 2022, the U.S. Department of Education (ED) extended the student loan payment pause through Aug. 31, 2022.

The pause includes the following relief measures for eligible federal loans:

·         a suspension of loan payments

·         a 0% interest rate

·         stopped collections on defaulted loans

Here are four steps to make sure you’re prepared for student loan payments to resume:

·         Update your contact information in your profile on your loan servicer’s website and in your StudentAid.gov profile.

·         Review your auto-debit enrollment or sign up for the first time. To do so, log in to your loan servicer’s website or contact your loan servicer directly.

·         Check out Loan Simulator to find a repayment plan that meets your needs and goals or to decide whether to consolidate.

·         Consider applying for an income-driven repayment (IDR) plan. An IDR plan can make your payments more affordable, depending on your income and family size.

You can always contact us at CCCS of Buffalo to help with your student loan questions and concerns! www.consumercreditbuffalo.org716-712-2060