Biden Administration <br />Offers New Start, for Student Loan Borrowers in Default.<br />CNBC reports that as the Biden Administration announced another four-month pause on student loan payments.<br />there was more good news for borrowers who had fallen behind on their payments before the COVID-19 pandemic.<br />The U.S. Department of Education says it could soon pull millions of borrowers out of default by marking their accounts as current.<br />Officials believe borrowers deserve a <br />"fresh start" on the repayment of their loans.<br />By eliminating the effects of defaulted and delinquent loans, the U.S. Education Department wants to help borrowers "reenter repayment in good standing.".<br />Higher education experts say delinquencies start <br />to appear on credit reports after three months, <br />though defaulted loans may take up to a year.<br />Officials say delinquent accounts will <br />reflect current status automatically.<br />According to CNBC, wage garnishment <br />and collections will also end.<br />Student loan repayments should resume <br />in September, though experts say another extension could be possible.<br />If borrowers experience difficulty <br />repaying their student loans, officials <br />say to apply for economic hardship or unemployment deferment.<br />which caps the amount on monthly payments and cancels any remaining debt after 20 to 25 years.<br />which caps the amount on monthly payments and cancels any remaining debt after 20 to 25 years
