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The Return Of Student Loan Payments; A Pandemic Reprieve Ends in January

The Return Of Student Loan Payments; A Pandemic Reprieve Ends in January

The student loan payments were introduced to provide financial assistance to students from low-income families. The recipients of federal loans are notified of the termination on January 31 next year. The federal authorities have sent emails to the students regarding the same. According to a Kiplinger article published on November 22, the government has provided several ways for the students to resume their benefits.

The article mentioned that if students require financial assistance due to the depleted economic condition, they can enroll in an income-driven repayment plan. The IDR plans help the students lower their education expenses. The eligible students will get the monthly payments based on their earnings. The students can apply for IDR assistance on the official website of Federal Student Aid.

There Are Other Options Available

There is another alternative for students in need of financial assistance. They need to refinance their loan amount with someone who lends money privately. Students should carefully read the terms and conditions of the papers concerning the loan. A fixed interest rate might help the students with their loan amounts. Eligible students can also avail deferment for forbearance. There are different types of suspensions. The students fulfill other criteria based on the type of deferment they apply for.

Eligible Students Can Apply For Deferments

There are specific conditions in which a student qualifies for unemployment or economic hardship deferments. The students must be unemployed to receive the benefits of unemployment deferments. On the other hand, students might be eligible for the financial hardship benefits if federal or state public departments help them. Students who are the peace corps volunteer might enjoy an easy qualification into the scheme of things.

The students employed full-time but have a gross wage lower than the threshold limit set by the federal department are eligible for the benefits. Speaking in numbers, if a student’s salary is below 150% of the poverty line, they will receive the assistance. The annual threshold amount for a  two-person family is $ 26,000 approximately. The students should keep the eligibility criteria in mind and apply smartly to receive a benefit plan that is best suited for them.

 

 

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