Tampa Student Loan and Bankruptcy Lawyer Blog — September 4, 2020
Believe it or not, many people are still in default with their federal student loans. The Fresh Start initiative, which allows someone to cure their federal loan default
, ends September 30. The end of the month. If you are still in arrears after that date, you will face collection actions for these federal loan and it is not pretty. Wage garnishments are federal, so there is no exemption for states. Tax refund seizure. Earned Income Tax Credits gone Social Security offsets. Poor credit scores.Why cure now? It’s free. Your credit report will be cleared of any delinquencies. If you defaulted at the start of Covid, for example, you will receive IDR credit. No need to consolidate. I called our one-time ability to consolidate Direct loans or rehab a student loan – get out jail cards. If we came across someone who had already done both, the only way to cure default was to file Chapter 13 bankruptcy in order to have a plan for catching up on past due payments. Imagine having to pay more than one student loan per month. Fresh Start is easy. It fixes many things. This video will show you how to do it and where to go. Takes five minutes.
