The deadline for student loan forbearance was extended until the end of January 2021, Education Sec. Betsy DeVos announced Friday.
More than 40 million student loan borrowers in the US were not expected to make payments on their federal student loans as part of the CARES Act package passed by Congress earlier this year as the pandemic posed financial insecurity for many Americans.
Student loan giant Navient (NAVI) promised to revamp a loan forgiveness program designed for public servants after settling a 2018 class action lawsuit from student loan borrowers.
The preliminary settlement — still subject to final approval by the court — requires Navient to “enhance its internal resources, maintain regular training and monitoring for call center representatives, update forms that are sent to borrowers and update its website.”
Read more: How to repay student loans: The full breakdown
Part of the settlement involves Navient providing $1.75 million to a nonprofit organization that will provide education and student loan counseling to public
Student loan forgiveness and bankruptcy are both ideas — and ways — that offer a second chance at what education was originally meant to offer: the American Dream.
“I always wanted to be an attorney when it was time for me to go to undergrad… it was sort of just automatic that I would take out student loan money in order to be able to pay the tuition,” Natalie Jean-Baptiste, an attorney who also specializes in student loans and bankruptcy cases, told Yahoo Finance. “And I didn’t really give it much thought it was just what you did.”
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