Like many people with student loan debt, you may have been crossing your fingers and toes recently. You might have been hoping that the $1.9 trillion relief bill announced this week would have spared some change to wipe away your debt.
Sadly, that has not happened.
Has any good news for student borrowers come from the stimulus package?
There are at least two positives to the bill. You might receive a one-off $1,400 payment like many other citizens. You could use this toward paying off your existing debt. The government has also vowed not to collect tax on any relief it provides for student loans up to 2025.
Will student loan cancellation ever happen?
While the promised cancellation of student loans did not make it into this bill, that does not mean it will not happen. Only those in authority can make the final call. There’s a lot of uncertainty over the issue largely because there is fierce conflict over the issue on the opposing sides.
Should I seek bankruptcy now or hold off to see if relief arrives?
Technically there are ways to clear student loan debt through bankruptcy. However, it is not easy. If you can clear your other debts, such as credit cards or personal loans, by filing, this may free up the money you need to continue paying your student loan. It will leave you with less to pay if legislation is passed to erase a chunk of student loan debt.
If you are considering bankruptcy, it may be hard to decide whether to file now or wait a while. The best person to discuss this with is an experienced bankruptcy attorney. They cannot predict the future, but they can help you discover more about what bankruptcy entails — including whether it is possible to use it for debt relief from your student loans.
