Student Loan Debt —
Continued Struggle …
With Support Available.
There is more than $1.74 trillion in student loan debt. How did we get here?
History of Student Loan Debt:
To some degree, student loan issues go back to 1944 and the GI Bill. There have been various updates and changes over time. In regards to Bankruptcy, one used to be able to discharge student loans in a bankruptcy case without issue. Then it became more difficult, you had to wait a specific amount of time and then discharge those loans. However, in 2005, it all changed. No student loans would be discharged without an adversary being filed.
Bankruptcy Student Loan Relief:
For years, there has been a goal by some to restore relief for those struggling with student loan debt. The number of student loan debts that have been discharged through adversaries is minimal. We have seen more action fueled by the pandemic. It’s important to know that now you have more opportunities than ever for assistance.
Recent Timeline:
Looking at the last couple of years, we can see the flux in relief that gets us where we are today.
- COVID-19 loan payment hold
- payment pause
- servicing events
- IDR/PSLF
- elimination of interest on federal loans
- CARES Act
- U.S. Department of Education new initiatives
- waive student loan interest
- suspend payments for 2 months
- extension of relief
- help with FFEL
- more flexible coverage for PSLF
- new IDR Programs are formed
- Servicers leaving the federal student loan program
- CornerStone terminates contract
- FedLoan Servicing no longer accepting loans
- Granite State Management and Resources will not renew
- Navient stops servicing loans and transfers them all to Aidvantage
Who Will Help:
More than ever, not only are their programs, changes and opportunities for student loan borrowers — there are those that want (and are able) to assist. Always avoid any questionable sources, those that state they are with Dept of Ed, make empty promises or have hidden fees. Do your research!
- All information that you need for yourself may be found at StudentAid.gov
- You can reach out to an organization:
- American Consumer Credit Counseling
- The Institute of Student Loan Advisors
- National Association of Consumer Advocates
- National Consumer Law Center
- National Foundation for Credit Counseling
- You may also find assistance through a Student Loan Attorney
Moving Forward:
No matter your situation, look into your opportunities! You may be able to apply for deferment or forbearance. Find an IDR that works for your situation. Refinance may be the answer. Some companies may offer debt relief through settlement.