by Bonnie Sinnock, National Mortgage News | July 10, 2023
Consumers struggling to pay college bills could face more financial difficulties with legal challenges impeding attempts at student debt cancellation and forbearance for federal loans of this type ending, but some things will minimize mortgage impacts.
When interest-free federal student-loan forbearance ends later this year, borrowers will have a 12-month reprieve between Oct. 1 and Sept. 30 of next year from late fees, adverse credit reporting or referrals to debt collection agencies. Some loans may have more payment flexibility.
“Borrowers are going to have a little bit of time to pull things together and get back into positive habits for repayment without their credit being impacted,” said Sara Parrish, president of CampusDoor, an Incenter company that provides white-labeled private student-loan services.
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