CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

Student Loan Forbearance Ends April 30th. Here’s What You Need to Know

student loan forbearanceThe federal government extended forbearance of repayment of student loans during the COVID-19 crisis. This forbearance was due to end at the beginning of January, but the deadline was extended to April 30, 2022. This means unless the president makes a change, payments will resume the following day for millions of Americans.

According to White House Press Secretary Jen Psaki, the Education Department is “still assessing the impact of the omicron variant. Psaki claims that efforts are underway to create “a smooth transition back into repayment is a high priority for the administration.”

However, for the millions of Americans struggling to make ends meet with student loan debt, this is of little comfort. The good news is there are things you can do to improve your situation.

What Can I Expect with the End of Student Loan Forbearance?

According to studentaid.gov, debtors will receive a billing statement or other notice at least three weeks before their payment is due. Make sure your contact information is accurate and up-to-date so you receive this information.

If you anticipate problems meeting your payment obligations, you might consider applying for an income-driven repayment plan that could make your payments more affordable.

Take note, scammers have already begun trying to take advantage of student loan borrowers. These criminals claim you are eligible for immediate loan forgiveness through scam programs including “Biden Loan Forgiveness” or “CARES Act Loan Forgiveness.”

Do not share any personal or financial information with these people and report the contact to authorities for investigation if you receive a call.

According to Consumerfinance.gov, if anyone contacts you for personal information or money regarding your loan payments, it’s a scam.

What Can You Do to Prepare for the End of Loan Forbearance?

If you believe you’ll be unable to resume repayment of your student loan once loan forbearance ends, consider the following:

  1. Apply for extended forbearance. Some borrowers are eligible for up to 36 months of additional student loan forbearance. You’ll need to fill out a request for economic hardship or unemployment deferment. Do this as soon as possible.
  2. Enroll in an income-driven repayment plan (IDR). Our team can help you with this. IDR plans limit your monthly loan payment to 10 to 20% of your discretionary income.
  3. Refinance your loan to reduce your monthly payments. With student loan refinancing rates near all-time lows, now is a great time to secure a lower rate on your student debt. Refinancing reduces your monthly payments, as well as the total amount you owe on your loan.

If you’d like to know more or you want to speak to someone about your student loan debt before April 30th when forbearance ends, we can help. The sooner you have a plan in place the better the outcome for you situation. Our team uses software that analyzes your student loans and determines what you can do to improve your situation.

For many, this includes arranging income-driven repayment plans for your federal student loans. In some cases, your monthly payment is reduced to nothing.

To schedule a free consultation, contact the Law Offices of Robert M. Geller at 813-254-5696.

Archive

Video Testimonials

Tampa Bankruptcy Law Blog

5 Common Budgeting Mistakes Newlyweds Make and How to Avoid Them

Budgeting mistakes are common, especially when you’re young. Not all newlyweds are young adults, but many first-time marriages do involve...
Read More

When Should Married Couples File for Bankruptcy Together?

There's no easy answer to the question of timing when it comes to bankruptcy. In some cases, it may make...
Read More

Can Your Spouses Debt Force You Into Bankruptcy?

If you're married and your spouse has a lot of debt, you may be wondering if that debt can force...
Read More

Do You Need a Bankruptcy Attorney If You’re Divorcing with Financial Problems?

Divorce and bankruptcies are more common than many people realize. Financial problems make a stressful transition even more difficult. If...
Read More

Can You File Bankruptcy without Your Spouse?

Filing for bankruptcy is a decision that should not be taken lightly. It can affect your financial life and the...
Read More

How Seniors Can Avoid Bankruptcy

Seniors are at a high risk of bankruptcy, but there are ways to avoid it. What do you need to...
Read More

What Happens If I Own Too Many Assets to File for Chapter 7?

Does hiding assets in bankruptcy protect them from your creditors? If you own too many assets to qualify for Chapter...
Read More

How to Find the Best Lawyer for Filing for Bankruptcy after Retirement

Many retirees decide to file for bankruptcy as a way to get a fresh start. But finding the right lawyer...
Read More

Does Declaring Bankruptcy Affect My Retirement Savings?

When you're struggling with debt, the thought of bankruptcy might cross your mind. But what would that mean for your...
Read More

Is a Reverse Mortgage Right for Me?

Reverse mortgages in Florida are loans that allow homeowners 62 and older to borrow against the equity in their homes....
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

NACBA Logo avvo1 avvo2 avvo3 LEA BBB Logo

Call For A Free Initial Consultation

813.254.5696

Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 532-3939

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions