3 Big Reasons Lawmakers Are Hesitant About Student Loan Payments Resuming
Although federal student loans are still set to resume after September 30th, recent rumblings propose there may be one final extension, leaving borrowers nationwide pondering, Will they or won’t they?
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Why Lawmakers Are Nervous About Student Loan Payments Resuming
According to Travis Hornsby, student loan expert and the founder of Student Loan Planner, lawmakers are quite nervous about student loan payments resuming. Travis discusses the various reasons, including:
Payments Have Now Been Paused For A Year And A Half
A lot can happen in 18 months - people move, change their email addresses and phone numbers. It is very possible that many servicers will not have the necessary contact information to alert borrowers of their impending payments. Travis can discuss the primary dangers and concerns over this very real issue.
The Pandemic’s Disproportionate Effect On Low-Income Americans
Even though the economy has shown promising signs of recovery, more than 9 million Americans remain out of work. Not only that, but protections and benefits like moratoriums on evictions and foreclosures and expanded unemployment benefits will expire this summer, making the commencement of student loan payments a financially suffocating prospect.
Student Loan Servicers Have Very Little Financial Incentive To Care Because Their Contracts Are Up
An example of this is FedLoan recently telling the Department of Education that they do not want to renew their student loan servicing contract past its expiration date in mid December 2021. Travis predicts this is going to be an ongoing problem. In other words, why go through all the work of hiring people to help borrowers when their contacts are going to expire anyway?
About Travis Hornsby
Travis Hornsby is a speaker and the founder of Student Loan Planner, which he launched after helping his physician wife navigate ridiculously complex student loan repayment decisions. To date, Student Loan Planner has consulted on over $1 billion in student debt. Travis is a Chartered Financial Analyst and brings his background as a former bond trader trading billions of dollars. Trying to solve the student loan crisis brought him out of his first retirement at the age of 25.
He brings that same intensity to analyzing the best repayment paths for graduate degree professionals with six figures of student debt. Travis and his team have helped over 5,486+ clients save over $272 million dollars on their student loans, and he’s been featured in U.S. News, Business Insider, Forbes, Huffington Post, Rolling Stone, ChooseFi, Bigger Pockets, Afford Anything, Money, and more.
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