The resumption of student loan repayments is raising concerns among experts, who warn of potential negative consequences for borrowers. With the government set to send defaulted loans to collections next month, many fear an increase in financial hardship.
Several factors contribute to these concerns. Some borrowers may not be aware of the repayment restart, while others may struggle to afford the payments after a long period of suspension. This could lead to missed payments, defaults, and damage to credit scores.
Financial experts are urging borrowers to explore available repayment options, such as income-driven repayment plans, which can lower monthly payments based on income and family size. They also recommend seeking financial counseling to better manage debt and navigate the repayment process. The potential for widespread defaults highlights the need for proactive measures to support borrowers and mitigate the negative impacts of resuming student loan repayments.
Student Loan Repayments Could Hurt Borrowers, Experts Warn
Experts are concerned that the restart of student loan repayments could negatively impact many borrowers. The government plans to send defaulted loans to collections next month, adding to the financial strain. Analysts predict potential damage to credit scores and increased financial hardship for those struggling to make payments. Borrowers are encouraged to explore available repayment options and seek financial counseling.
Source: Read the original article at ABC