5 Reasons to Support Student Loan Borrowers During the Payment Suspension
Millions of student loan borrowers are feeling temporary relief from their debt burden. Congress originally paused student loan payments and interest accrual beginning in March 2020 through the implementation of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Three consecutive executive orders later, including President Biden's in January, extended the suspension through September 30, 2021.
While the suspension is helpful, expert student loan counseling remains an important need for students, employees, and business customers. Here's why:
- Student loans are confusing. The pandemic added confusion to an already challenging student loan arena. Between different loan types and qualification requirements for certain repayment options and forgiveness programs, borrowers need a trusted expert for insight that goes above and beyond typical loan servicing support.
- Not all loans are eligible for payment suspension. While payments aren’t required and no interest is accruing on federally held loans, the suspension does not apply to all education loans.
- Voluntary payments are a big opportunity not to be missed. If payments are made during the suspension, loan servicers are applying them to the principal balance (after any interest that accrued prior to March 13, 2020 is paid). It's an incredible opportunity for borrowers, and their employers, to more quickly reduce loan balances and the long-term interest paid on the debt.
- An undefined horizon. At this point we don't know if the student loan repayment suspension will be extended again or if some of the debt will be forgiven. Once a decision is made, borrowers will need to know how it affects them personally.
- A unique opportunity for defaulted borrowers. The CARES Act offers borrowers with federally held loans a unique opportunity to rehabilitate their loans utilizing flexibilities that work to their advantage. We’re summarizing the details now and will be sharing more information soon.
Ascendium’s deep expertise in student loan repayment support has led to the development of our Student Loan Success Center™. We partner with schools, employers, and other organizations to provide one-to-one personalized counseling to student loan borrowers. When student loan questions arise, borrowers—at all stages of student loan repayment—can contact our knowledgeable Success Coaches through a toll-free phone number or by email.
This is just one of the new services we're offering to help create a Debt Liberation Movement! Where all people can reach their full potential.
Best regards,
 |
Beth Erickson
Vice President Repayment Solutions |
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