Student loan debt in California
… has been making headlines for years, but until the Spring of 2020 and the CARES ACT, there hadn’t been much headway in how to handle it. COVID-19 has been a catalyst for everything from spiking unemployment rates to the way we interact with friends and neighbors. Telecommuting for work, once the norm for the gig life, has spread to more traditional positions. School programs have shifted online, classroom sizes have shrunk, and technology is playing a more dynamic role in education.
Thanks to new legislation, if you have defaulted on student loans or need help making payments, you have some breathing room to step back and decide what the next steps should be to get a handle on this huge chunk of debt affecting your credit. At the Law Office of Terrence Fantauzzi, I have the specialized training and experience to help you understand your options and get your student loan payments under control.
CARES Act and Federal Student Loans
A stimulus package, known as the Coronavirus Aid, Relieve and Economic Security Act, was passed by Congress and signed into law by the president on March 27. The legislation delivered a $2 trillion relief package designed to help Americans deal with the economic blows delivered by COVID-19. In addition to taking steps to preserve jobs and reduce the impact of furloughs and unemployment, there were provisions made for Federal student loan debt. Key elements that were initially due to expire September 30, 2020 include:
- Automatic suspension of all payments and interest on student loans held by the U.S. Department of Education
- Suspension of collection efforts on defaulted loans, wage garnishments, tax refund seizures and Social Security offsets
- Payments from the government that are shielded from the federal tax intercept program
August Executive Order CARES Act Updates
The repercussions of COVID look like they may affect Pasadena, Rancho Cucamonga and the surrounding area much more than anyone would like. Among the addendums made to the CARES Act is the three-month extension to continue the student loan payment pause through the end of 2020.
Call Me Today and Take Back Control
If you were struggling to make payments, in default or suffering student loan wage garnishment as of March, give me a call and let’s talk. We can discuss where you stand financially and see which repayment plans will allow you make payments without having to choose between student loans and rent or utilities. If you have several outstanding student loans, we may be able to consolidate them into one, more affordable payment.
It can take more than 45 days for the paperwork to work through the system. Use the pause to get organized and out in front of it. Contact me now, and we can get the forms filled out, submitted and a new plan in place, so you are ready for a bright start by the New Year.