If you’ve been following our blogs, you know we recommend your College Finance Plan include exercising your right to be politically active. And if you owe money on postsecondary loans you borrowed from the Federal Direct Loan Program (FDLP), it’s particularly important to be politically active right now by contacting your U.S. Representative and U.S. Senators!
A recent COVID-19 related presidential executive order extended the following postponements on FDLP debts through December 31, 2020:
- Interest Postponement: The government is charging no interest on FDLP loans through December 31;
- Payment Obligation Postponement: Payments on FDLP loans aren’t required through December 31; and
- Default Collection Postponement: All activities normally conducted to collect defaulted FDLP loans (bad credit reports, hiring collection agencies, garnishment (i.e. confiscation) of tax returns and wages) are suspended through December 31.
Mr. Trump said he’d extend these postponements beyond December 31 if necessary. And extensions are certainly necessary since our country’s new explosion of COVID-19 infections and deaths is causing many of the 44 million Americans owing the FDLP to become ill, loose jobs, etc.
But after losing the election Mr. Trump seems less and less interested in running federal programs such as the FDLP. So there are serious questions about whether he’ll make good on his promise to suspend these postponements. While President-Elect Biden seems more likely to extend them, if he does it will be a full three weeks between December 31 and when he takes office and can do so.
This means Congress needs to extend these postponements as part of some “must pass” bill such such as the one that’ll fund the government after December 11 or a COVID-19 relief bill that may be negotiated. But congressional Republicans must drop their opposition to extending the postponements past December 31 for this to happen.
Contact them in support of extending the FDLP postponements because it’s in your best financial interest! Contact them in support of extending the FDLP postponements because it’s in the best financial interests of 44 million fellow Americans! But contact them, and do so as soon as possible!
College Affordability Solutions has 40 years experience in help borrowers with federal parent and student loans. Contact us to book a no-charge advising session if you need help managing the debt you owe from such loans!