In Default On Your Student Loans? Your Homebuying Options May Be About To Change.
/One of the statements we often hear from prospective clients is ”I have everything I need to buy except I have unpaid student loan debt. “ The US government has recently put new regulations into action to address the crushing student loan debt that is impacting so many potential homebuyers. While much attention has been paid to the public sector employees who can now more easily seek student loan forgiveness, an even more recent change impacts a much larger portion of the population.
For those student loan borrowers who find themselves in default on their public student loans, the Biden administration will move millions of people who were in default on their loans to being classified as current.* “Collection activity, including wage garnishment and the offset of Social Security benefits, will also end. About 30 days after the delinquency or default is removed from your credit history, you should order a free credit report to make sure the information is removed and your loans are marked as current, Kantrowitz said.”
This is welcome news for so many people who find their student loan status as a major stumbling block. This change provides borrowers an amazing opportunity to bring their accounts current and begin to pay their student loans again and/or take advantage of an income-based repayment plan.
Interested in seeing how this change can impact your homeownership plans? Contact us and learn more.