Nope, that is not the name of a delicious new candy bar with chocolate, Rice Krispies, pretzels, salted caramel, and almonds. I wish, and if anybody decides to manufacture this terrific idea, please let me know where to buy them.
Times are tough for tens of millions of student loan payers. Over 5 million payers are in default and of 38 million who should be making payments, only 1/3 are.*
This is not the time to stick your head in the sand and hope the problem will go away. The new Department of Education is not friendly to defaulting borrowers. The consequences of not paying include:
- garnishment of wages
- garnishment of pensions
- withholding of federal tax refunds, Social Security payments and other federal benefits
The good news is that some employers are getting creative to help employees stay current on their loan payments.* There are options such as
- Matching 401k contributions with student loan payments
- An outright benefit of direct student loan payments from the employer to the employees’ lender (not the whole payment, but a portion)
Be sure to ask your employer if this is an option.
To be very clear, I, Kristi Sullivan, am NOT a student loan expert. But these resources are:
- The Institute of Student Loan Advisors (TISLA): TISLA offers free, unbiased advice about student loans, including help with repayment plans, forgiveness programs, and resolving disputes. You don’t have to pay or sign up to use their services.
- Your Student Loan Servicer: The company that manages your loan can help you understand your options, apply for lower payments, or request a pause in payments. Their contact information is on your loan statement or online account.
- National Foundation for Credit Counseling (NFCC): This nonprofit gives free or low-cost help with budgeting, managing debt, and student loan advice. They can help you make a plan to manage your loans.
