wWhen we think of college debt, the image that comes to mind is of young people starting their careers, but the truth is that in United StateThe percentage of seniors who are drowning in student loans is steadily increasing.
Of the $1.6 trillion in student debt that the US population accumulated in 2020, people over the age of 50 owe 340 billion dollars Up significantly from $47.3 billion owed in 2004, according to a Fed report Bank of New York.
The federal government is now offering to forgive up to $20,000 in student loans. One way to relieve some of this burden is through Public service loan forgiveness (PSLF), which exempts borrowers who work in the public sector—such as government, public education, or law enforcement—from repaying outstanding loans after making the equivalent of 10 years of payments. Here’s what you need to know to take advantage of Public Service Loan Forgiveness.
What to do about recovering a $6,000 loan
FinanceSpecialist Courtney Johnston recommends that upon receiving the 6,000 refund, “Instead of paying hundreds of dollars a month to service the loan, I put that money directly into a high-yield savings account where my refund is.”
“There is no reason to make payments while the payment pause is in effect and forgiveness is a possibility. But since I am able to make student loan payments right now – and I was just preparing in case payments resume in January Building up my savings seems like a smart move.
“If you can afford to pay yourself the monthly installments while your student loans remain paused, I recommend that. Then, even if you are approved for loan forgiveness,You’ll have a nice emergency savings fund or extra money at your disposal.”
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