There is a good chance that the next stimulus bill not include all student loan forgiveness.
Here’s what you need to know and what to do instead.
We expect a lot from the next stimulus bill. Will You Get A Student Loan Discount? Will there be a second stimulus check? Will unemployment benefits are extended? Senate Majority Leader Mitch McConnell (R-KY) said the the next stimulus bill will be the last and it will be closer to $ 1 trillion (which is half the size of the CARES Act). For student loan borrowers, the most likely scenario is that you habit get a student loan discount in the next stimulus bill. Why? Senate Republicans have not prioritized canceling student loans and instead focus on other initiatives to stimulate the economy, such as a return to work bonus, a lower social charges and limitation of liability for COVID-related lawsuits. So if there is no student loan forgiveness, what can you do to repay student loans?
Here are 5 things you can do right now:
1. Pay off your student loans faster
Yes, pay off your student loans faster. It might not be that easy given the state of the economy, the high unemployment rate and a lot of uncertainty. However, difficult times call for severe action. The best thing you can do to manage your student loans is to tackle them head-on based on your personal financial situation. What’s the best way to pay off student loans faster? The best place to start is with these options. The good news is that all of these options are free:
Do this: Choose the right path for you. Start now.
2. Continue to suspend your student loan payments
If you want to forget about your student loans and focus on other aspects of your financial life, then you have that luxury until September 30, 2020. Until then, you are not required to make loan payments. federal student and your the interest rate on your federal student loans is 0%. While your federal student loan balance does not increase, you also will not receive a student loan forgiveness. After September 30, it returned to normal. Your interest rate will be reset and you will owe monthly payments again.
Do this: If you choose this strategy, your payment break is automatic. However, please have a game plan in place for resuming student loan payments. The earliest would be best.
3. Get a lower payment
Want to get a lower student loan repayment? Update your income if you have an income-based repayment plan. If you’ve lost your job, your hours have been reduced, you have been placed on leave, or your salary has been reduced, let your student loans manager know. You can recertify your income, which could lower student loan repayment. Income-based repayment plans are for federal student loans only and are based on your discretionary income, family size, and state of residence. There are four types of income-based repayment plans:
- Income Based Reimbursement (IBR)
- Pay as you earn (PAYE)
- Review of compensation as you earn (REPAYED)
- Income Based Reimbursement (ICR)
Do this: Contact your student loan manager to recertify your income and find out if you qualify for a lower monthly payment. You can also change your repayment plan based on income.
4. Find other ways to get student loan forgiveness
If they don’t give you your student loan forgiveness, then you need to get your student loan forgiveness. Why? Don’t expect a student loan discount in the next stimulus bill. House Democrats included the cancellation of student loans in the Heroes Act, a $ 3 trillion stimulus bill that was passed by the House of Representatives. However, the final bill limited who qualifies for the student loan exemption, and he is unlikely to pass the Senate. If you want a student loan discount, the public service loan forgiveness program can help you get student loan forgiveness for your federal student loans. While 98.5% of applicants were rejected, 2,215 borrowers collectively received $ 146 million in federal student loan forgiveness.
Do this: Consider a job in the public service or with a non-profit organization. The job market is tight, but you can start your job search now to find the right opportunity.
5. Refinance Your Student Loans Now
Refinancing a student loan gets you a lower interest rate and pay off your student loans faster. You can refinance federal student loans, private student loans, or both. Why refinance your student loans?
- Student loan refinancing rates are very low
- Lock in a lower interest rate – permanently
- Save money and pay off your student loans faster
- Payments are on hold, but your student loan balance does not disappear
- The next stimulus bill will likely have no student loan forgiveness
Do this: This student loan refinance calculator shows you how much money you can save when you refinance student loans.