A rather sobering statistic has just been reported. Roughly 40% of all college graduates who have student loans outstanding are not making the payments. For whatever reasons there may be, this is more than serious. Some people may not know what they are jeopardizing their credit scores and financial wellness. Moreover, they’re getting to a habit that can quickly turn into a very deep hole.
The Government Will Crack Down
Uncle Sam is not amused when you decide not to pay your student loans. There are a number of things which can go wrong if you forget your obligation. Credit scores will suffer but there is more. You may discover that any tax refund you are getting is intercepted by the government to pay off your debt. If you are married, your spouse may find his or her tax return is debited as well. Government considers default to be in existence if the payments are missed for 270 days. In this situation there are extraordinary powers permitted by which your money owed can be collected. For example, the government can garnish as much as 15% your disposal paycheck. Anyone who has cosigned the original federal loan is also going to have a few nightmares. It is enough to say that financial wellness can be strained quite easily by not paying on student loans.
Circumstances Cause Some Difficulties
There can be any number of reasons. One is not having a job that will pay for the debt. Another reason is a financial budget that simply can’t stretch any further. That has to be some help from somewhere and financial wellness programs can do that. Countrywide Pre-Paid Legal Services has such a benefit that could be offered to your employees.
There is no reason to think that young people are lazy or financially irresponsible. It is quite possible a young graduate does not know what to do. This is understandable because the young person has never had to deal with debt this size before. Countrywide has counselors available to help. The responsibility of these professionals is to offer the right guidance. Working with a plan member, Countrywide helps develop various payment options. The employee can decide which is the best for his or her financial circumstances, and move forward. Forbearance, by the way, is not the only option.
Employers Do Want to Help
employers do not want to act as parents, but the best ones know that young employees need help. Financial wellness is a benefit that can place the new college graduate on the right track. Countrywide has worked with numerous organizations and we are aware that demographics are important. A prospective client may not have a lot of new college graduates, but the workforce still needs some financial wellness assistance. We permit clients to choose what options are going to be part of the plan. This way, the organization better response to those who work for it. Employees are grateful for any benefit which helps them better deal with life circumstances. The pay back to the employer is increase productivity and very high morale. Countrywide has designed its own administration to deliver the benefit quickly. We also guarantee the best member services possible.
A sad reality of today’s economy is large amounts of student debt. Many young people get depressed about it and are afraid of spending their entire lives paying off their obligations. a financial wellness program will show how it is not too difficult to pay back the loan. The counseling helps a person stay away from drastic decisions. We have other benefits that can be of benefit to an organization, and we welcome all inquiries. We want to assist in helping employees better handle their finances