President Biden’s administration has extended two major initiatives from now until September 30, 2021, which benefits employees and their family members.
1. Interest will stop accruing.
2. No repayment is required.
The media reports the President will take the interim period to consider an Executive Order to forgive up to $10,000 in outstanding student loan debt; or if he will work with Congress to create a more sustainable education debt management policy for Americans.
Based on the above, IonTuition recommends the following:
A. Stop refinancing your Federal loans into private student loans – regardless of the interest rate or “freebies” they hand out.
B. If you stop making monthly payments during this interest-free period, contribute to your 401(k) or savings accounts.
C. If you have a Defaulted Federal loan, contact IonCure. You can get your loans out of default without any payments or dealing with a collection agency for a limited time.
D. If you’re an employer without a contribution program, now is the time to add one. Employers can also provide tax-free student loan contributions through 2025. Any contributions made now through September 30, 2021, will be directly applied to the principal balance (after outstanding interest and fees) due to the interest-free period. Please contact IonTuition today to discuss creating or changing your contribution program.
Why you should stop refinancing your federal student loans and other recommendations
