Borrowers may face financial hardships when payments return
While stimulus payments and other pandemic-driven assistance have provided much needed relief for many, delinquency rates on non-student-loan debts have been on the rise over the last year. Recent data from the Consumer Financial Protection Bureau shows that these numbers are expected to continue to rise as loans go back into repayment. Student loan borrowers who are already experiencing hardship can expect to face additional financial strain when loan payments resume. With Purdue Federal Credit Union, you don’t have to face financial challenges alone. Reach out to our financial counseling team for free, confidential assistance regardless of membership. We’ll help you create a plan to build a solid foundation.
Borrowers may receive unnecessarily high bills
Some student loan servicers have been known to create barriers that stand in the way of borrowers’ access to lower payments and loan forgiveness under income-driven repayment plans and Public Service Loan Forgiveness (PSLF). Multiple servicers have made false or misleading statements to borrowers about their options in an attempt to dissuade them from seeking lower payments or forgiveness under PSLF. The cost of this misinformation could add up to thousands of dollars in loan balances that should be eligible for forgiveness through income-driven repayment or PSLF. As we begin to plan for repayment, it’s important that borrowers have access to these existing programs for relief. Check out our on-demand webinars that cover all of the bases when it comes to understanding student loans and your options.
Borrowers may experience servicing transfers
Over the last several months, millions of borrowers have noticed their loans have transferred from one servicer to another. These transfers will continue through the end of the year. As loans get transferred between servicers, there are increased opportunities for errors. Student loan borrowers can confirm who their servicer is by visiting the Department of Education’s website.
Student loans can be confusing but at Purdue Federal Credit Union, we offer a variety of ways for our members to learn how to make the most of them from blog posts, to interactive courses, to financial counseling. We’re here to be your financial partner for life!