Have you been paying your Student Loans?

Have you been waiting on forgiveness of your Student Loans?

Recently, the Department of Education has begun collection efforts for Student Loan borrowers behind on their payments, who have not repaid their debts or entered into some type of workout plan regarding their Student Loan debts.

The government estimates that there are 6.4 million Student Loan borrowers between the ages of 50 - 60, that owe a combined $282 Billion - or $46,000 per borrower.

For some history or background, Student Loan payments paused during the COVID pandemic. But in October 2023, Student Loan payments resumed (subject to any workout plan negotiated with the Department of Education). Now, the government is seeking collection against any defaulted Student Loans, and they have as tools, the authority, under certain circumstances, to: (1) garnish wages, (2) intercept and retain tax refunds, and (3) intercept and retain social security payments.

Unfortunately, Student Loans are still largely non-dischargeable under Bankruptcy Law, although there have been some in-roads.

So how can you manage? There are still options available, including:

• Income-Driven Repayment.
• Public Service Loan Forgiveness (PSLF)
• Modification

You can also plan ahead for the costs of Education, by researching the different borrowing programs, Grants, 529 (and similar) plans.

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