Debt —
Student Loans,
Forgiven…
How would you feel if someone told you that all of your student loan debt has been forgiven?
I can only imagine what a relief (or disbelief) that must be! Finally (and yet somewhat out of the blue) all of the stress about finances, worry, fear and pressure are gone. Your anxiety and depression, lifted!
Just over a year ago major changes came about in the student loan world and it’s been amazing to hear all of the success stories.
While one out of every ten Americans has defaulted on a student loan, and 5% of all student loan debt is in default.
- An average of 7.1% of student loans are in default at any given time.
- 11% of new graduates default in the first 12 months of repayment.
- $124.4 billion in student debt is in defaulted student loans.
- Over a million student loans enter default each year.
- Student loan default affects 9 million borrowers and their families.
But there is hope!
As a student loan lawyer, we’ve seen success with:
- Clients having $100,000+ of student loan forgiven under administrative rules
- Lowering monthly payments
- Loan discharge in bankruptcy
- Evaluation and implementation of federal loan consolidation strategies
- Identification of repayment options for which one can qualify
- Assess of forgiveness programs based upon career and medical status
- Circumstances in which one is eligible for partial or complete forgiveness
- Stopping lawsuits, garnishments and loss of benefits
- … and more!
Yesterday President Biden sent a congratulatory message and a request:
Your Federal Student Loan Has Been Forgiven
Congratulations – your student loan has been forgiven because of actions my Administration took to make sure you receive the relief you earned and deserve.
For too long, the student loan program failed to live up to its commitments – and millions like you never got the relief you were owed because of errors and administrative failures.
I vowed to fix that, and I’m proud that my Administration has delivered on that promise.
I hope this relief gives you a little more breathing room. I’ve heard from countless people who have told me that relieving the burden of student loan debt will allow them to support themselves and their families, or move forward with life plans they’ve put on hold.
SHARE YOUR STORY ABOUT WHAT THIS RELIEF MEANS TO YOU
This action is on top of all my Administration has been able to achieve for students and borrowers. We have already approved over $127 billion in debt cancellation for 3.6 million borrowers, secured the largest increase to Pell Grants in a decade, fixed the Public Service Loan Forgiveness program so borrowers who go into public service get the relief they are entitled to under the law, and announced a new negotiated rulemaking aimed at delivering debt relief to as many as possible. For those who still have student debt, my Administration has developed the SAVE Plan – the most affordable repayment plan in history that will save borrowers money on their monthly payments and prevent balances from growing because of interest.
I’m proud that we were able to give borrowers like you the relief you earned. I promise you that as long as I am President, I will never stop fighting for hardworking American families, and will never stop working to make sure our democracy delivers for the American people.
So CONGRATULATIONS to those that have already found relief!
For everyone else, don’t give up hope. You still have options.