SafeAmerica Credit Union

CARES Act

• By Lisa Eddy

The CARES Act Extension and What It Means For You

It was announced that the final expiration of the coronavirus emergency relief benefits for borrowers with federal student loans, the CARES Act, will be January 31, 2022.

The relief bill was signed into law on March 27, 2020 to help most federal student loan borrowers by temporarily pausing payments and involuntary collections on federally held student loans, giving borrowers some much needed breathing room for those struggling with payments due to the pandemic.

You have a few opportunities to take advantage of this final extension:

  • Get ahead of your debt - If you're a federal borrower, you still have several months of debt relief before having to resume your monthly payments in February 2022. If you can afford it, take advantage of this chance to reduce your student loan principal while the interest rate remains at zero percent.
  • Prepare now for student loan repayments in February 2022
  • Refinance any private student loans - rates are at an all-time low

If you need assistance with the refinancing of any private student loans, our partners at LendKey can help.

LendKey offers great rates and unmatched service and is the leading free platform for student loan refinancing. The application process is 100% online and LendKey is always your point of contact if you have questions.  Check your rate today!

• By Lisa Eddy

Managing Debt in the Time of COVID

Information brought to you by our partner, GreenPath Financial Wellness

In the early weeks of the pandemic, understanding the economic impact of the crisis was on the minds of most of us. A specific concern was managing debt in the time of COVID.

The roll-out of forbearance programs as part of the CARES Act gave relief to millions of households and gave Congress time to bolster unemployment benefits and offer emergency aid to businesses.

For those managing debt in the time of COVID, it was helpful to work with creditors to temporarily pause payments toward credit cards, mortgages, auto loans, federal and private student loans and other monthly payments.

These options provided relief and stability to many people during an uncertain time.

Fast forward several months, and many of these forbearance programs are nearing their expiration dates. Lenders are now set to decide whether to continue letting people delay paying off debt including credit cards balances, personal loans and car payments.

LEARN MORE ABOUT DEBT MANAGEMENT PLANS

If you are having trouble paying off your credit card debt and/or other debt, a debt management plan may be a good option.

Learn how they work >>

As the pandemic crisis continues, having a clear set of options can help us feel a sense of confidence when looking at family finances. Here are some ideas to move forward as deferrals and forbearance periods are set to expire:

1. Review the Programs

There’s a lot to know about the ins and outs of deferrals, and student loan deferment and forbearance.

For people who participated in credit card deferrals, contacting your lenders to obtain a review of the terms of the deferrals is helpful.

The information is a good reminder as to the terms of the repayment options and deferral time period.

For those who delayed monthly mortgage payments as part of the CARES act, it can be helpful to review the terms of the original programs.

The Conference of State Bank Supervisors provides an in–depth guide entitled the “Consumer Relief Guide – Your Rights to Mortgage Payment Forbearance and Foreclosure Protection Under the Federal CARES Act.”

The idea is to connect with information so you can make strong decisions about your future.

2. Stay Current

To help manage the uncertainty, it is also helpful to stay current with information related to any changes in forbearance and deferral expiration dates.

At this writing, the temporary delay in paying off personal debt is set to expire around the end of July for some creditors. A few big lenders are extending deferments by several months.

There could be changes to the timing, so staying current with the latest news and information is a good option for people who will need to start making payments again.

When managing debt in the time of COVID-19, Consumer Financial Protection Bureau is a good source of trusted information and publishes recent updates.

3. Team with Caring Counselors

As the temporary pause in payments sets to expire, it is a good opportunity to understand options, and take a closer look at not only any loans on pause but also your entire financial picture.

GreenPath’s NFCC-certified counselors help you begin a conversation about where you are today, and what you need to keep in mind when managing expiration of deferrals and forbearance.

For many, it’s a smart way to pay off your debt. Caring, compassionate counselors guide you through a process to assess your financial situation, understand your goals, and create an action plan to work toward them.

You might have questions as to what’s ahead. We listen with respect, offer advice and information, and suggest options that could help you meet your needs.  Request a call with a financial expert >>

As a SafeAmerica Credit Union member, you have access to GreenPath Financial Wellness; a free financial counseling and education resource.  We encourage you to take advantage of all they have to offer.

Learn More about GreenPath