Biden Extends Eviction Moratorium & Student Loan Forbearance
There is good news from Washington, D.C. President Biden has signed executive orders that continue the eviction moratorium first put in place by President Trump. Biden is also continuing the forbearance of student loans, which should help many people who still cannot find work.
According to Fox News, Biden signed the executive orders on his first day in office as part of his administration’s commitment to helping those still struggling from the coronavirus pandemic. As experienced bankruptcy attorneys in South Florida, we realize that many of our neighbors are hurting financially. We hope that the recent actions help them in some capacity.
According to some estimates, more than 20% of renters were vulnerable to being evicted when the previous moratorium expired. This worked out to around 30-40 million people around the country, and millions in Florida, we are sure. The eviction moratorium set by the Centers for Disease Control will extend through March 2021, at which point Biden will need to reassess whether to extend it again. His proposed stimulus package also includes requests for $30 billion in rental assistance.
Student loan repayment is frozen until September 30, 2021. During this time, federal loans should not accrue any interest, and borrowers are not required to pay them back. If you have private loans, however, you are still responsible for making payment or contacting your lender to check about options. An estimated 41 million borrowers have benefited from the student loan pause thus far.
Student Loan Cancellation is a Tougher Sell
Many people have hoped that President Biden will outright cancel student loan debt. Though members of his own party believe he has that power using executive action, Biden insists he needs Congressional approval.
He also wants to cancel less debt than other Democrats. Those like Elizabeth Warren want a minimum of $50,000 cancelled per borrower. Biden is only asking Congress to cancel $10,000 per borrower. He believes that those with larger debts are those most able to pay the debt back because they earned graduate degrees in law and medicine.
Getting Congress to agree to any cancellation will be tough. The Senate remains closely divided and there is no guarantee of bipartisan support. Student loan borrowers may need to wait until 2022 or even later before seeing relief.
Can We Help?
Anyone struggling to pay their rent or other bills should consider how a bankruptcy would assist them. If you face eviction, a Chapter 7 filing can immediately halt being put out on the street. However, you need to file quickly, before a judge gives your landlord permission to put you out. Once that occurs, your landlord can go ahead and remove you.
If your student loans are burdensome, we can discuss your odds of eliminating them. Admittedly, it’s an uphill battle but some borrowers are eligible. Otherwise, erasing other debt could free up cash to make paying your loans feasible.
Please call Nowack & Olson, PLLC today. Our Plantation bankruptcy attorneys have helped many renters and student loan borrowers in their hour of need. Call us today to learn more.