![]() ![]() The Education Department previously estimated that the pause put about an extra $5 billion back into borrowers' pockets, giving them more economic freedom to not only buy a car, house, or other big expense - but to also leave their jobs in pursuit of better opportunities. Steinbaum previously told Insider that the economy has been "more than fine" without borrowers' student-loan payments. And that's very bad for the macroeconomy." 'We're looking at a pretty severe fiscal contraction' But he added that if the government starts to try collected on student loans that borrowers are unable to repay, "it's just a more onerous way of operating a lending portfolio of trying to collect debt that fundamentally can't be collected and trying to squeeze the borrowers as much as possible in order to make that debt collectible. "I think it's clear that the fact that people have more spending power means they can spend more, and that's good for aggregate demand," Steinbaum said. Marshall Steinbaum, senior fellow at the Jain Family Institute and economics professor at the University of Utah, told Insider that "it's pretty clear the payment pause has been very stimulative to the macroeconomy." ![]() We do plan on making sure it's a smooth reentry to repayment," Cardona said, adding that "the emergency period is over, and we're preparing our borrowers to restart."īiden also agreed to codify the end of the student-loan payment pause in the debt-ceiling deal he reached with Speaker of the House Kevin McCarthy, suggesting the president did not deem additional relief necessary for borrowers this year in connection with COVID-19.īut some economists think the administration - and the country - should start prepping for an economic strain once payments resume. "We're confident, Senator, that the Supreme Court will rule in favor of the targeted debt relief, providing relief for millions of borrowers, and we want to make sure that the information that borrowers get is accurate. Education Secretary Miguel Cardona told lawmakers in early May that "we're going to resume payments for 60 days after, but no later than June 30. Trump and President Joe Biden since extended it multiple times - Biden in November most recently extended the relief through 60 days after June 30, or 60 days after the Supreme Court issues a final decision on the legality of the president' plan to cancel up to $20,000 in student debt for federal borrowers, whichever happens first.Īnd the most recent extension is very likely to be the final one. In March 2020, former President Donald Trump first implemented the student-loan payment pause to give borrowers financial relief during the pandemic. It's likely going to hurt not just borrowers, but the entire US economy. Student-loan payments are resuming this year. ![]() ![]() If you are not sure if Freedom Debt Relief is right for you, you can always speak to a qualified credit counselor to get more information and help you make the best decision for your financial situation.Account icon An icon in the shape of a person's head and shoulders. If you are having trouble making your monthly payments to Freedom Debt Relief, you may want to consider other options such as debt consolidation or bankruptcy. Freedom Debt Relief will not contact your creditors on your behalf to negotiate a lower settlement amount. It is important to note that if you cancel Freedom Debt Relief, you will still be responsible for the debts you owe to your creditors. Once you have completed the form, you will need to send it back to Freedom Debt Relief. To cancel Freedom Debt Relief, you will need to contact customer service and request a cancellation form. You will also not be responsible for any future payments to your creditors. If you decide to cancel Freedom Debt Relief, you will not be charged any fees. There is no contract or commitment required. The good news is that you can cancel Freedom Debt Relief at any time. If you are struggling with debt and are considering using Freedom Debt Relief to help you get out of debt, you may be wondering how to cancel Freedom Debt Relief. The company has helped over 6 million people settle their debts and improve their financial situation. Freedom Debt Relief is one of the largest debt settlement companies in the United States. ![]()
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