Supreme Court will hear arguments for and against this loan cancellation plan
Guest Editorial by Parachute Credit Counseling
The financial futures of nearly 43 million borrowers across the country are in limbo as the Supreme Court considers the legality of President Biden’s student debt forgiveness program.
President Biden's student loan forgiveness plan, announced in 2022 – which provides up to $20,000 in relief to millions of borrowers – faces legal challenges.
While many Americans were happy with the new loan forgiveness plan, there is concern that, without the root causes of the student debt crisis addressed, there will be no fundamental changes made to a system in great need of repair. Most people on all sides of the issue agree that the present system is broken and will need legislation to fix it.
Even without further and far-reaching actions at this point, if allowed, student loan forgiveness will still make a big impact among borrowers who are low-income or didn’t finish college and are stuck paying off a loan.
Parachute Credit Counseling – formerly known as Consumer Credit Counseling Service of Buffalo (CCCS) – announced it is now offering free student loan counseling throughout the eight counties of Western New York, along with expert strategies for attaining financial stability.
Although payments on federal student loans have been suspended since March 2020, with interest-free relief, they will resume later this year, so it is time for all to plan.
Despite the current uncertainty, other relief options and changes to existing programs will be available to help borrowers reduce or eliminate their debt. Now is the time for borrowers to seek free and unbiased counseling to understand their options.
Parachute has operated the only student loan counseling program in Western New York for the past 10 years. Right now, the national total student loan debt, including federal and private loans, sits at $1.75 trillion.
About 1 in 6 adults in America holds federal student loan debt. A typical undergraduate finishes school with nearly $25,000 of debt and a monthly payment of $460, which takes an average of 20 years to pay back, while accruing $26,000 just in interest. Tuition fees have nearly tripled since 1980, outpacing inflation and wage growth. Student loan repayment is a critical issue that needs much direction.
Parachute encourages residents to join our free student loan counseling program, staffed by experienced, certified financial counselors. Call 716-712-2060 or visit https://parachutecreditcounseling.org/ for more information on our program and other financial services we provide.