Listen this is a very important update if you have student loans. The massive $2 trillion dollar stimulus package signed by the Government last Friday offers relief to your federal student loans. The bill allow most borrowers to stop making monthly payments through September 30th with no financial penalty. Interest will be suspended and the account will remain in good standing.
The student loan payment waiver is everything.
Individuals on income based repayment or public service loan forgiveness, the $0 payment over the next 6 months ALL qualify towards your loan. That’s HUGE!
What this means is that if you are on a 10 year loan forgiveness program, the $0 payments for the next six months count towards your loan forgiveness required payments.
So it’s not beneficial in anyway to keep paying your student loans especially if you are on an income based repayment program or loan forgiveness. Please CALL your loan servicer THIS WEEK and make sure you take advantage of this! The announcement stated these changes will be automatically applied but I would still call if I were you.
Also, I highly encourage you to consider paying off debt that you may currently have to free up cash since we don’t know how long this pandemic will last and how it will overall affect the economy. If you have a secure job I encourage to invest at least half of the funds you’re about to save over the next 6 months. (By the way, the StockMarket Investing Seminar For Beginners was awesome this weekend)
This is your opportunity to build wealth and legacy for you and your family. As I taught in the webinar this weekend, you don’t need a lot of money to build wealth but you do need to start.
I want everyone to know about the benefits of the new stimulus package because most people get left out not knowing what they qualify for. One other bonus you may not know. The stimulus bill also provides a temporary incentive for employers to pay down their employees student loan balances. Employers are now able to contribute up to $5,250 toward each employees student debt through Dec 31st without any tax consequences for the employee. (Source: Wallstreet Journal)
If you have any specific questions regarding student loans and debt management, this is one of the services we offer at LesWin Financial.
