National Student Debt Consolidation – How Will This Executive Action Help You Settle Your Student Loans?
It is a known fact that millions of American citizens are currently suffering from heavy debts. Some of them even consider filing for bankruptcy when they cannot manage to pay their loans promptly. They do not realize that they have options available to them that can help them easily eliminate their debts without resorting to bankruptcy. Many students also find themselves struggling with large debts that are hard to pay. However, there is no need for any student to feel any kind of despair as there is a very good solution for him or her – national student debt relief program.
The number of Americans filing for bankruptcy has now reached an all time high. The number of bankruptcies has reached an alarming level because more people are no longer able to manage their monthly financial obligations. The number of non-performing lenders on Wall Street has also increased, which have forced many financial institutions to adopt debt forgiveness strategies. It has been found out that the number of insolvencies will only continue to rise in the future, especially after the federal student loans are eventually rolled back by Obama’s administration. So, it is quite obvious that there is a serious need to provide debt forgiveness to millions of American citizens.
For those who are in massive debts and are interested in applying for debt forgiveness, the very first thing that they should know is the exact process of debt relief. Essentially, it is mandatory for an individual who wants to apply for debt forgiveness to approach a debt settlement company. A debt settlement company is the best possible option for those who are not aware of the exact mechanics involved in this process. These companies will help an individual get a debt reduction of about 50 percent of his total due amount through negotiation. This means that in exchange of paying a relatively lower than normal amount for the outstanding loan balance, an individual can easily get rid of all his financial liabilities.
However, there are several critics who question the legitimacy of debt cancellation programs run by the Federal Trade Commission of the United States. On the one hand, many people have raised questions on the racial basis of the policy, which goes against the long-standing universal principles of racial equality. Further, there are other critics who question the legality of the method through which debt cancellation is facilitated. According to them, the cancellation policy does not fit into any legitimate definition of consumer relief programs.
On the other hand, some experts have maintained that the cancellation of federal student loans by the United States government is a perfectly legitimate method of debt relief. This is primarily because the government takes the initiative of forgiving large amounts of debt via direct negotiation with the financial institutions. In addition to that, the government enacts an act through which it attempts to mitigate the effects of the economic recession on the country.
So, it can be seen that no other governmental body can claim to have facilitated a better solution for the problem of debt as the United States government has done. This is the reason why there are more individuals taking advantage of this option. The number of individuals opting for debt consolidation has also significantly increased in recent times. It has been observed that these 45 million Americans do owe a good portion of their debt to the Student Loan Debt Relief Act of 2021. Therefore, they cannot afford to make payments on all the debts simultaneously.
However, there is no doubt that the new laws are of great help to the debtors in getting rid of their unsecured liabilities. The most important thing that has made this executive action all the more beneficial for borrowers is the provision of installment facility with the new loan relief laws. This means that if borrowers fail to repay the entire amount of debt on the agreed terms and conditions, they will not have to face any charges.
It is true that such measures would make it easier for borrowers to settle their debts without any fear of being penalized. But the question is whether these policies would actually work or not. The answer is definitely “Yes”. This is because even if a borrower fails to repay the entire amount of his student loans according to the terms and conditions of the present lending institutions, he would not be charged with any sort of penalty. Therefore, he would be able to avail timely and easy relief.