Student Loans Archives - Page 3 of 4

COVID-19 Student Loan Relief Extended through May 2022

Last week, the U.S. Department of Education announced* a further extension of the COVID-19 emergency relief for student loan repayment, interest, and collections. The pause was previously extended until January 31, 2022, but an additional 90 day extension was approved through May 1, 2022.

So what does this mean for you? Eligible** loans have been granted the following relief measures:

– Suspension of loan payments

This suspension will help 41 million borrowers save $5 billion in student loan payments per month. There is no fee for this, and your loan servicer will automatically implement the suspension. There is nothing you need to do on your end!

– Temporary 0% interest rate

Your loans will not accrue (accumulate) any additional interest until May 2022. Optional payments made during this time can allow you to pay off your loans faster, and lower the total cost of your loans over time.

– Stopped collections on defaulted loans

Throughout the emergency relief period, tax refunds will not be withheld, wages will not be garnished, Social Security payments (including disability benefits) will not be withheld, collection calls will stop, billing statements will not be sent, and interest will not accrue.

When your student loan payments are set to resume, you may have some questions on what that will look like for you. If you are interested in having your federal or private loans evaluated by CCCS of Buffalo’s student loan experts for various options you may have available to you (consolidation, income based repayment, forgiveness, deferment, forbearance, etc.), please give us a call at (716) 712-2060 option 1 to schedule a student loan counseling session!

Resources:

* https://www.ed.gov/news/press-releases/biden-harris-administration-extends-student-loan-pause-through-may-1-2022

** https://studentaid.gov/announcements-events/covid-19/payment-pause-zero-interest#which-loans-eligible

Debt, Student Loans

Student Loans – Huge Changes Coming to Public Service Loan Forgiveness (PSLF)!

On October 6, 2021, the Department of Education announced an overhaul that is coming for the Public Service Loan Forgiveness (PSLF) program for federally backed student loans! For a limited time (now through October 31, 2022), borrowers may receive credit for past payments made on their student loans that would not have otherwise qualified for PSLF.

Key parts to this announcement include:

Implementing a limited PSLF waiver to count prior payments
Simplifying what it means for a payment to qualify for PSLF
Eliminating barriers for military service members to receive PSLF
Automatically helping service members and other federal employees access PSLF
Reviewing of denied PSLF applications and identifying/correcting errors in PSLF processing
Improving outreach and communication with PSLF eligible borrowers
Simplifying the PSLF application process
Making long term improvements to PSLF through rulemaking

Helpful links:

Press release, fact sheet on PSLF program overhaul

What borrowers need to know: summary of new rules, next steps, FAQs

PSLF help tool

Want to know what this may mean for you? We at CCCS of Buffalo offer Student Loan Counseling! To speak with a knowledgeable counselor about your student loan options, please give us a call at (716) 712-2060 today to schedule an appointment!

Debt, Student Loans

Student Loans: Their Current State & What to do Next

Student Loans: Their Current State & What to do Next

At the onset of the pandemic, in anticipation of economic challenges and concerns looming for nearly 43 million loan borrowers, student loan assistance came when legislation passed within the CARES Act, providing a student loan payment pause and interest waiver through September 30, 2020 on federal education loans held by the U.S Department of Education. Fast forward over one year, three extensions later, and federal student loans are at a standstill. We want to recap the current relief that is available on student loans, as well share some strategies you can take now, and going forward as the relief expires.

Current Relief Available:

Interest and monthly payments on federally held loans are suspended through September 30, 2021.
You do not need to contact your student loan servicer or take any action on your federally held student loans.
Make sure your servicer has up-to-date contact information and check your mail or email so you can receive any updates or information about your loans.
Suspended payments through September 30, 2021 will count towards any student loan forgiveness program, as long as all other requirements of the loan forgiveness program are met.
The Department of Education has stopped the collection of defaulted federal student loans.
Private student loans are not covered by the COVID-19 emergency relief assistance

What strategies can you take at this time?

· During this continued period of 0% interest until September 30, 2021, you can make payments which will be fully applied to the principal balance. If you are in the financial position to do so, this is encouraged, as it is always a good thing to pay down on 0% interest loan! (Albeit temporary)

· If you are concerned about more pressing household expenses such as your mortgage, rent, insurances, medical, utilities and groceries; you may want to consider taking advantage of the student loan payment suspension to ensure that you are able to cover your basic needs during this time of uncertainty.

· Another reason to take advantage of the student loan payment suspension is if you currently lack sufficient savings. Have some savings can be the catalyst in protecting you in the event of financial emergency, avoiding debt, as well as reducing your financial stress.

Preparing for Repayment to Resume:

· When the payment suspension ends, you’ll receive your billing statement or other notice at least 21 days before your payment is due.

· Check out the new tool, Loan Simulator on https://studentaid.gov/loan-simulator/ to find a repayment plan that meets your needs and goals, or to decide whether to consolidate your loans. Loan Simulator can help you estimate payments under a variety of repayment plans, including income-driven repayment (IDR) plans.

· How can you find out how much your payments will be when payments restart? To find out what your payment amount will be, you will want to contact your loan servicer, as they are your official source for up-to-date information about your loan and repayment.

· Are you concerned that your student loan payment will be too high when payments resume? You may be eligible to lower your monthly student loan payment by enrolling in an income-driven repayment plan. Under an IDR plan, payments may be as low as $0 per month.

The best thing you can do at this time is review your student loans and ensure that you have a game plan for when the current student loan relief expires. Contact us for a Student Loan Counseling session if you need help managing your student loans! (716) 712-2060

Student Loans

What’s College Tuition Insurance?

What is Tuition Insurance?

· Insurance that can cover and provide reimbursement of financial losses for students who are forced to leave school for unexpected medical reasons, such as serious injury or illness, chronic illness, and mental health conditions.

· Most insurance plans can refund expenses such as tuition, housing, academic fees, and deposits

· Estimated cost is $200 in premium for every $10,000 worth of coverage

· Offered by select insurance providers, and even some schools offer it themselves

*Pandemics are typically excluded from the policies, but this year companies may be making exceptions – Likely “You have to become ill, you have to have a positive diagnosis, and your doctor should recommend you leave school” – Quoted by John Fees, co-founder of GradGuard, a tuition insurance provider.

When does it not provide coverage?

If a student chooses to withdraw from school voluntarily, perhaps due to how classes will be taught (virtually) or for other COVID-19 related reasons, they will not get their money back.

What steps to take when considering purchasing tuition insurance?

· Take a close look at the school’s refund policy. Experts warn many colleges don’t provide refunds after the first few weeks

· Consider a few likely scenarios that could occur to the student forcing them to potentially withdrawal from school. Students with pre-existing conditions are eligible for the plan.

· Explore the type of insurance that is being offered by the school, or by an outside provider and analyze the costs.

· Read the fine print!

· Review the cost vs. the benefit to determine if appropriate to purchase

Student Loans

Consumer Credit Counseling Service Applauds NYS Student Loan Borrower Bill of Rights

Consumer Credit Counseling Service Applauds NYS Student Loan Borrower Bill of Rights

Student Loan Debt Continues to Cause Problems; Only Local Program Available

Consumer Credit Counseling Service (CCCS) announced a new initiative today, sponsored by the New York State Department of Financial Services (DFS), the first ever Student Loan Borrower Bill of Rights which outlines protections for New York student loan borrowers.

Last month, NYS DFS officials embarked on a statewide tour to advise student borrowers of their rights and hear directly from parents and students about their experiences with paying their loans. This is part of DFS’s “Step Up for Students” program where they hold town hall style events to bring together DFS representatives, including the Department’s newly announced Student Loan Advocate, with student borrowers, their families, college financial aid officers, legislators and the general public to hear and address concerns about the growing issue of student debt.

Underscoring these new efforts is the undeniable fact that student loans continue to negatively impact millions of millennials. At present time, 1 in 4 Americans have student loan debt, approximately 45 million people.

As the local nexus for student loan debt issues, CCCS is working to expand its student loan counseling services which are the only available services in the region.

The fact of the matter is that with average student loan debt per graduate a staggering $37,200—typical monthly payment $393/month--student loans continue to create problems for individuals, families and the economy at large.

CCCS’ collaboration with NYS is an added measure to protect the 2.8 million student borrowers living here.

“As the federal government steps down from protecting student borrowers, DFS will step up for students by enforcing our state’s consumer protection laws and making sure borrowers know where to turn when faced with predatory or unfair lending practices,” promised Department of Financial Services Superintendent Linda A. Lacewell.

The Student Loan Borrower Bill of Rightshighlights significant protections that DFS’s regulation of student loan servicers provides to student loan borrowers. They include borrowers’ entitlement to:

Detailed financial aid award letters from schools in New York;
Clear, accurate and complete information about the borrower’s loan terms;
Information about any available loan repayment plans and options;
Information about any available discharge, forgiveness, and cancellation options;
Loan payments applied to the borrower’s account in best interest of the borrower;
Knowledgeable customer service representatives who treat you respectfully and fairly;

Detailed loan account histories that are easily and securely accessible online;
Seamless transfers if your loan is serviced by a new company
Accurate payment history reporting to credit agencies; and
Responses to complaints you make to your servicer.

Anyone seeking assistance navigating student loan repayment should contact CCCS at 712-2060. Many individuals with 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. At CCCS, we specifically designed our program to meet the needs of this growing population segment.

CCCS’ Student Loan Counseling Program provides the assistance, support, direction and sometimes hand-holding that our clients need, helping them create a solid plan to pay their debt.

We began the Student Loan Counseling Program in 2012, in response to the growing need for education and assistance with student loans. In the past seven years, we have helped nearly 1,000 individuals achieve a level of financial freedom previously unknown.

In our program, Nationally Certified Student Loan counselors work to:

• Evaluate student loan debt (current or in default)

• Explore options for student loans including deferments, forbearances, alternative repayment plans, and consolidation loans and forgiveness options

• Assist in applying for the appropriate option

• Assist in communicating with the lender, as needed

• Review credit score, credit report and living expenses

• Set appropriate financial goals

The financial counseling services we provide help student loan borrowers chart a course for financial stability. Most borrowers are young and economically unstable, usually very low income at this point in their lives. Many of our clients are Millennials, saddled with, and drowning in student loan debt. Every day we see young people with substantial student loan debt who had only passing knowledge of what the ramifications of missed payments would be.

Our goal is to help our clients achieve financial stability and we give them the tools and support needed to get to that point. We recommend our services to anyone who wants to achieve a financially healthy life. We are not just for people in crisis—we can help people who proactively want to take charge of their finances, creating budgets and developing spending plans so that they can live a stable and successful life free from financial stress.

Debt, Student Loans

Student Loans – The Next Debt Crisis?

The last recession was fueled, in part, by a mortgage crisis; economists warn that the U.S. may suffer a student loan crisis next.

On a national level, graduates owe around $1.5 trillion in student loans — the largest source of household debt after housing — but it is at an individual level that the extent of the looming meltdown becomes clear. Analysis of recently-released data suggests that almost 40% of borrowers who entered college in 2004 may default on their student loans by 2023. Filing for bankruptcy is not an option, since “undue hardship” is the standard the borrower must meet despite the fact that the term has never been legally defined and can be liberally interpreted by a presiding judge.

The CCCS Student Loan Counseling Program has been extremely successful, primarily due to the complexity of the student loan market. Many individuals with student loans feel overwhelmed with anxiety and fear as they try to navigate options available during repayment, with some falling prey to the abundance of unscrupulous companies claiming to help. We specifically designed our program to meet the needs of this growing population segment.

CCCS’ Student Loan Counseling Program provides the assistance, support, direction and sometimes hand-holding that our clients need, helping them create a solid plan to pay their debt.

CCCS has many other programs to help. In addition to Student Loan counseling, we provide one-on-one financial counseling, financial coaching, creditor repayment counseling, small business counseling, pre-purchase housing counseling, foreclosure mitigation counseling and bankruptcy counseling.

Contact a Certified Student Loan Counselor at Consumer Credit Counseling Service to get help. To get started, consumers can visit www.consumercreditbuffalo.org or call 712-2060/1-800-926-9685.