The US Government Extends Student Loan Repayment Benefits for 5 more years. After the COVID-19 pandemic struck the world, nations worldwide have been ordering mandatory lockdowns to help keep their citizens safe. This affected all areas of life, including colleges and universities. Many students were ordered to study at home or be confined in their on-campus lodgings for most of the day. Other than affecting morale, however, the lockdown also affected the economy.
Many US students who attend a university or college take out student loans to cover their expenses. This is because families might not have the fees required to let their children attend college on hand. With student loans, a student can immediately go to a college or university and start their education career and pay the borrower back later.
However, higher education in the US is not cheap, and many students will acquire student debt the moment they graduate from college. They will have to repay their debt after years of hard work. Fresh graduates often worry about paying off their student debt as they are new into the workforce.
Why is student debt so high?
The US is rather infamous for high student debt worldwide, to the point that it is an accepted fact of life. Some people take years or even decades to pay off their debt. It could take around 20 years to pay off a large amount of debt.
There are many reasons why student loans in the US are so high and difficult to pay. The most devastating reason is simply that demand is too high. Many people today want to enroll in college or university and get a degree, believing that this will help them find a secure career. However, these institutions cannot keep up.
Colleges receive millions of dollars in endowments from wealthy donors, and they claim the state does not fund them enough. This gives them the opportunity to double-dip if you will taking money from all three, Government Loans (Which students have to repay), Any state or federal grants or funding, and wealthy donors. They can provide perception for keeping up with the demand claiming has led to rising budgets to pay faculty, expanding financial aid programs, and student services are in high demand as well. This has led to college tuition skyrocketing sharply over the years.
Student Loans Extended
You might think that with the COVID-19 pandemic, students will be struggling much more than before, but thankfully, there is some hope. Under the Cares Act, which was passed in Congress in March 2020, employers can help their employees repay their student loans or pay a part of their tuition fees. Employers will be able to make tax-free payments per employee up to $5,250 between March 27, 2020, and December 31, 2020. Both federal and private loans are eligible as well.
However, this student loan relief was set to expire on December 31, 2020. This date passed more than a week ago, but Congress, in the act of grace, extended the student loan relief until December 31, 2025. As a result, both employers and employees can rejoice. The extension will allow companies to retain their employers longer and train them to boost the workforce. At the same time, Americans can breathe easier and slowly improve their financial futures.
Background Checks for Employees
Many employers want to protect their companies from swindlers and fraudulent hires. As a result, they would ask potential employees to submit for a background check. Doing so will weed out any dishonest employee prospects and separate the genuine applicants from the unscrupulous ones. This can help establish trust between the employer and the employee. By providing a valid background check from a reputable company, you will prove that you rightfully earned your qualifications. This will increase your chances of being hired and eliminate doubt.