Some significant changes in college debt will take place in the coming months. First, the US Supreme Court is expected to rule on the Biden administration’s loan forgiveness plan around June 30. In addition, the student loan freeze will expire on August 30. Regardless, the college debt situation for many employees will be affected.
The moratoriums have certainly helped, but people may have stopped expecting to make a monthly payment. If the payment requirements start again on September 1, the same people may need help. It is therefore crucial to be ready for all possible outcomes to avoid problems with financial well-being. Here are some ideas:
1. Stay up to date on all developments. An individual must stay informed of any updates related to the loan forgiveness plan and/or the student loan moratorium. This means reading the news articles, keeping in touch with the loan officer and following relevant social media.
2. Create a budget if you haven’t already. Making a budget ensures that you can afford to make payments if the loan moratorium ends or if you don’t qualify for loan forgiveness. Identify areas where spending can be reduced so that additional money is available for potential payments.
3. Explore repayment options. It is possible that a person does not qualify for loan forgiveness. However, there may be some other options, such as income-driven repayment plans, extended repayment plans or debt consolidation.
4. Budget for an emergency fund. You can call it the rainy day allotment. You set aside money so that there is a safety net ready in the event of an unexpected expense or loss of income.
5. Check your credit report. Reviewing this document will tell you if your loan status is correct. If you find any errors, report them to the credit bureau immediately.
These are all valuable suggestions, and there are others that can allow a person to protect their financial well-being. Unfortunately, much of the information is unknown to the average employee who has college debt. Unfortunately, too many of these people will try to use patience to cover up the problems. It honestly doesn’t help because sooner or later you will have to pay the pipe. It helps to have an employee benefit like financial well-being. Nationwide prepaid legal services offer practical benefits that organizations can provide.
We have one nationwide network of certified advisors that deal with everyday financial well-being issues. College debt is one of them. Our advisors will advise a plan member on what options to consider and how to budget effectively. Additionally, the advisors provide some practical tips on how to manage college debt. It’s just one of the services Countrywide provides.
We have other ways to help employees maintain their financial well-being. For example, we can offer advice on managing medical bills, surviving bankruptcy and even buying that first home. In addition, we have an advisor in each community where there is a nationwide client and plan members receive priority status.
Recessions are a worrying economic phenomenon for many people. The thought of potentially losing a well-paying job and facing a dramatic drop in income is a terrifying prospect. We understand and appreciate the anxiety of financial well-being members. There are ways to avoid the trauma caused by recession, and it takes having the right information and sensible guidance to prepare for the worst. Our advisors are ready to help anyone develop a plan to deal with a financial downturn.
We want to help people cope with all financial crises. If you would like to know more about what we can offer your employees, please contact us at your convenience. We welcome any opportunity to talk to you about the nationwide plan.