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The Financial Nightmare Creeping Up on Student Loan Borrowers
5 frightening ways borrowers will get screwed in October.
The coming months are going to be a horror show for the country, and student loan borrowers have some particular concerns to face this fall.
With a record $1.53 trillion in outstanding student loan debt and a delinquency rate of just under 11%, student loan borrowers are absolutely drowning in red ink.
Let’s take a look at how the next few months are going to make their situation even worse.
1. Extra unemployment money is ending (sooner than planned)
To help combat the macroeconomic shock of millions of American consumers having nothing but unemployment benefits to rely on, thus destroying the heart of our economy (which is 70% consumer spending), the government has been supplying up to $600 per week of enhanced unemployment benefits.
That extra money will soon end. And sooner than most people think. From CBS News,
The reason comes down to a technicality: the schedule for paying out unemployment benefits. The Coronavirus Aid, Relief, and Economic Security Act, or the CARES Act, set July 31 — a Friday — as the final day for paying the additional $600 in…
