College Student Loan Debt Crisis Update
Federal Student Loan Payments Suspension Extended
The COVID-19 pandemic has renewed focus on the student loan debt crisis.
In March 2020, the passage of the CARES Act allowed for the administrative forbearance of federal student loans, i.e. suspending the payments and interest of federal student loans through the end of January 2021.
Under the new Biden administration, President Biden, through Executive Order, has extended administrative forbearance for federal student loan repayments at least until September 30, 2021.
Private Student Loans Options
College graduates with federal student loans and/or private student loans may also have additional assistance in the repayment of their student loans.
The CARES Act provided an opportunity for employers with educational assistance programs to make payments on an employee’s student loan principal and interest.
Initially, this legislation temporarily allowed employers to provide up to $5,250 in tax-exempt student loan repayment contributions or tuition assistance from March 27, 2020, through Dec. 31, 2020.
The CAA has since extended these provisions through Dec. 31, 2025.
A major human resource benefit of the employer-created student loan repayment assistance programs is helping employers with recruitment and retention of quality employees.
Since 2018, the number of employers offering student loan assistance has doubled, and these employer offered programs are expected to continue growing despite the current state of our economy.
Check with your Human Resource Dept to see if they offer and/or plan to offer a student loan repayment assistance program for their employees.
For more detail information on the above, visit Student Aid.gov @ https://studentaid.gov/announcements-events/coronavirus
A Word to the Wise…
An Academic Pearl of Wisdom
Whenever a college student faces an academic and/or social challenge, they often ask a peer or a friend first for advice. And that’s okay.
However, resolving the issue to your best advantage often requires consulting with an academic advising professional as well.
Your academic adviser knows the campus academically, administratively, and socially.
And what they don’t know, they can point you to the person who does know. Include this strategy in your current plan for college success.
Disclaimer Reminder: A college student's first line of inquiry should always be with their campus academic adviser. College Success Life Coaching Advising Sessions provide additional problem-solving options to undergraduate and graduate students for further exploration on their individual campuses. Students should always consult their assigned adviser not only during the course selection process but periodically to keep apprised of programmatic changes, testing requirements, course additions/deletions, GPA modifications, etc.
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