Senate confirms Rohit Chopra as new director of Consumer Financial Protection Bureau (CFPB) By a vote of 50-48 on Thursday.
Chopra led Federal Trade Commission (FTC) Since 2018, where he has taken a clear stance on the “disastrous impact of student loan debt”. He criticized the federal government for enabling financial institutions to “aggressively pursue borrowers, levy hefty fees, and even humiliate them with their employers through wage garnishments.” Testimony to the 2019 Congress.
This will not be Chopra’s first role serving in the CFPB. He formerly served as an assistant director, where he headed an agency serving student loan borrowers. one in 2014 CFPB TestimonyChopra said student loan debt creates a “domino effect” on the greater economy because it reduces labor market outcomes and Prevents borrowers from buying homes and cars, Starting a business and even saving for retirement.
“If we still believe that going to college and working hard can help a person climb the economic ladder, then we need to wake up to the realities of our broken student loan debt collection system and fix it.”
Chopra also served as special adviser to the Secretary of Education, where she “saw first-hand the influence and power of government contractors such as Wall Street and Navient over our student loan system.”
Keep reading to learn more about the new CFPB director and how his appointment may affect future student loan loan forgiveness measures. Also, consider your options for student loan cancellation, such as income-driven repayment and private student loan refinance.
If you decide to refinance your private student loan, be sure to compare offers from multiple lenders. Make sure you are getting the lowest possible interest rate for your situation. You can do this Compare Student Loan Rates Without affecting your credit score on Credible.
Student loan debt cancellation likely
Chopra says she believes the education secretary has a “clear authority to act” when it comes to renegotiating student loan debt under current law, adding that “education The department must do more to cancel student loans.”
But just because the new CFPB director believes in waiving off student loan debt, doesn’t mean it will make it easier for the government to do so. Comprehensive student loan forgiveness measures have proved difficult to implement, despite ongoing pressure from progressive lawmakers such as Senate Majority Leader Chuck Schumer (DN.Y.) And Senator Elizabeth Warren (D-Mass.).
Will Biden Forgive Student Loans?
While President Joe Biden campaigned to cancel student loan debt of up to $10,000 per borrower, it is unclear whether his administration will make good on this promise. Biden has said before that he doesn’t want to use them Executive authority to cancel federal student loans, instead leaning on Congress to work together to pass the law.
student loan forgiveness An unpopular agenda among GOP lawmakers, however, will be challenging for Democrats and Republicans to reach an agreement on how to handle the $1.7 trillion student loan burden.
While comprehensive student loan forgiveness is still out of reach, the Department of Education has $9.5 Billion of Federal Student Loan Debt Forgiven Ever since President Biden took office under programs such as repayment from debtor defense, Total and Permanent Disability Discharge (TPD)Closed school leave and Public Service Loan Forgiveness (PSLF).
How to Pay Off Student Loans If You Don’t Deserve Forgiveness
Student loan forgiveness seems out of reach even for borrowers who believe they qualify. for example, 98% of PSLF applications are rejected since the inception of the program, leading to controversy over eligibility requirements. Also, federal forgiveness programs do not apply to all types of loans, including private student loans.
Besides trying to free up your student loan debt, there are many other ways to manage student loan debt.
make more than the minimum payment
Paying extra for your student loans each month is an easy way to pay off your college debt faster and save money on interest. If you have room in your budget, try to increase your monthly student loan payments to reap the financial rewards.
you can use Credible’s Student Loan Payment Calculator To see how more than the minimum student loan payment can affect the cost of borrowing over time.
Refinance your private student loan at a lower rate
Student loan refinancing is when you take out a new loan with better terms to pay off your current loans. By refinancing at a lower rate, you may be able to reduce your monthly paymentPay off your loans faster and save money on interest over time.
It may also be possible to lock in a lower interest rate on your federal student loans. However, refinancing will make you ineligible for federal protections like income-driven repayment, student loan forgiveness programs and COVID-19 administrative forbearance.
Enroll in an income-driven repayment plan or hardship tolerance
If you’re trying to get by by making the minimum payment on your federal student loans, consider taking advantage of federal benefits such as income-driven repayment (IDR) and forbearance.
IDR plans limit your monthly student loan payments to around 10-20% of your discretionary income, depending on the type of student loan you have. you can apply Federal Student Aid (FSA) Website.
Federal student loan payments are currently under administrative withholding, but “Final Expansion” Valid only till January 2022. If you still can’t pay off your federal loan after that, consider applying for avoid financial hardship Or unemployment moratorium On the FSA website. If approved, you may qualify for an additional forbearance period of up to 36 months.
You may also be able to enroll in a forbearance program for your private student loans, but eligibility requirements and the length of the payment break vary by lender.
To learn more about managing your student loan debt, including student loan refinancing, Contact an experienced loan officer on reliable.
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