This is the time when New Year’s resolutions start to kick in, and people commit themselves to do things a little bit differently in the new year. Employees who have college debts might be a little anxious about what the future holds. Federal loans have been paused for quite some time, but that will change.
The Biden Administration extended the student loan payment, which was supposed to end January 31, 2022. The loan relief ends on May 1, 2022, so the payment obligations will start up again on May 2. The good news is that the repayment process will change and permit repayments to be managed through a portal on StudentAid.gov. The not so good news is that the debt still needs to be repaid.
Resolve to Manage the Situation
Student debt is the most significant responsibility that young employees confront. Forbearance will only allow a certain amount of breathing room, and then it will also become a problem. The payments cannot be avoided, but they can be better managed. There are ways to take control of the situation.
*Make additional payments. Every time you receive a pay raise, put a little of it towards the loan debt
*Create a budget and stick to it. Please do not make it too tight because there must be some wiggle room for emergencies. Nevertheless, having a budget makes everything a lot easier.
*Refinance if possible. The interest rates and conditions are not carved in stone. You can negotiate for a lower interest rate, and the one you are currently paying may have been created when your credit score was low. You can persuade a lending institution to drop your interest rate if you prove that you are a reliable credit risk.
*Seek forgiveness. The Public Service Loan Forgiveness Program can help. You can also investigate an income-driven repayment plan.
*Employer assistance. Organizations want to keep valuable employees, and tuition reimbursement or loan repayment are possibilities. However, there are other programs that an employer can use. Countrywide Pre-Paid Legal Services has a financial wellness benefit that provides excellent support for anyone trying to manage a debt monster.
Great Advice from Experts
Countrywide has a network of certified counselors who help with common financial problems. College debt is one of those areas where our counselors are proficient. As a result, a financial wellness plan member can get the kind of assistance that counts.
The counselors know all about college debt financing and what steps can lighten the load. In addition, our counselors can assist a person in making applications to the appropriate public agencies and help that stressed-out employee successfully apply for refinancing or loan forgiveness.
A long-term benefit of our financial wellness counselors is the creation of a workable budget. Too many people live from paycheck to paycheck, which causes a lot of stress. Our counselors will look at an individual’s existing cash flow and develop a workable budget to guide the plan member. That by itself takes a heavy burden off anyone’s shoulders.
Working with the Client
We have other services that will help. Financial wellness topics such as dealing with medical bills, bankruptcy, and debt management plans are possible with Countrywide. We ask employers to help us create their financial wellness plans.
Countrywide explains all the benefits to the decision-makers and answers every question. Those executives then decide their organization’s plan. Those choices are included in the final plan document, and Countrywide will provide the administration and member services. The result is a benefit that employees can strengthen their financial well-being.
Now is the time of year to look carefully at benefit possibilities that will help employees. Countrywide would welcome the opportunity to explain how our financial wellness plan benefits every employee can use. Please feel free to contact us at your earliest convenience if you are interested.
We look forward to talking with you.