Borrowers Rush to take Advantage of Millions in Student Loan Settlements
If you have student loans you have probably heard of what most experts are calling the “Student Loan Bailout”. Much like the mortgage bailout several years ago, millions of borrowers are having payments reduced and some even receiving refunds or forgiveness.
According to the Washington Post, the Obama administration announced a plan to forgive an additional $7.7 billion in federal student loans held by an estimated 387,000 Americans. This comes months after Sallie Mae, also known as Navient agreed to pay a combined $139 million and the U.S. Department of Education announced more than $480 million in forgiveness for other borrowers.
Borrowers are rushing to enroll in these programs before they change or possibly repealed under the new administration. Due to high demand there is a student relief helpline established at 1-877-218-7103 and provides a free eligibility check Mon-Fri 6am-8:00pm Pacific.
Why is Student Loan Forgiveness Happening?
The amount of money owed by individuals continues to grow due to high compounding interest rates. This is making it even harder for many to overcome student loan debt. As a result, many Americans are finding themselves under a huge burden and cannot pay for some essentials including rent, their mortgage, car payments and even monthly food bills. The effects of overbearing student loans are also affecting the national economy and adding to the growing financial crisis in America.
The Obama Administration hopes Student Loan Forgiveness options will put more money in our pockets and stimulate the economy. Like the policy or not it may help millions of Americans get back on track. The problem is that these programs could change when he leaves office in January.
A Common Struggle
Jeremy, a Web Designer, explains his personal struggle with student loans. He received his associates degree for Web Design from Bryant and Stratton College in 2004. Borrowing $45,000 in federal and private loans, Cooper says he hasn’t been able to get a job in Web design because, “Everything that I had learned from my degree became obsolete even before I graduated because the technology moves so fast.” Since graduation, Cooper has fallen behind on his loan payments, and his debt has nearly doubled to $88,000. Despite working full-time day and part-time night jobs and scaling back his expenses to the bare minimum, Cooper says he does not see a way out of default.
How do you Get Help if you Have Student Loans?
If you find yourself burdened by the repayment of student loans, you are not alone. You are just one of the 40 million Americans who owed financial institutions more than $1.31 trillion.
Despite this, there are several new programs aimed at reducing payments, forgiving, discharging or even cancelling student loans owed by millions of struggling Americans. Not everyone qualifies for these programs, but there are several options available for any type of situation. To know whether you are eligible for student loan forgiveness, consolidation or lower monthly repayments, call the Student Relief Helpline at 1-877-218-7103.
What is Student Loan Forgiveness?
“Loan forgiveness is the cancellation of all or some portion of your federal student loan balance. Yes, that’s right—cancellation of your loan balance. If your loan is forgiven, you are no longer required to repay that loan.”