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  • 2 years ago
Federal student loan payments have started again for around 30 million Americans after a three year pause due to the pandemic. Some of those borrowers who are now facing hundreds of dollars each month in repayments may be considering a student debt strike. The Debt Collective, a debtors’ union organizing the strike, says their goal is to force the government to erase student debt. Their message to students, pay nothing per month on student loans and look to options that will help you pay nothing monthly. But some experts warn that this could lead to long-term effects and can affect your credit and lead to collections down the road.

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00:00 federal student loan paym
00:02 for around 30 million Amer
00:05 pause due to the pandemic
00:08 who are now facing hundre
00:10 and repayments may be cons
00:13 debt strike. The debt coll
00:16 organizing the strike say
00:18 the government to erase s
00:21 to students pay nothing p
00:24 loans through options suc
00:26 defense to repayment, sig
00:29 driven repayment plans, he
00:32 or using the 12 months st
00:35 But there are risks to go
00:37 there is currently a 12 m
00:40 period starting october 1
00:43 encourages borrowers who
00:45 their payments to do so.
00:47 if you can't afford to pa
00:50 won't yet go to collectio
00:53 won't be sent to the cred
00:56 borrowers decide to take
00:58 accruing interest and mis
01:01 towards the necessary num
01:04 to qualify for some loan
01:07 And if they have taken th
01:10 then if they are just one
01:11 next payment after the 12
01:14 becomes delinquent after
01:17 loan experts say the miss
01:19 reported to credit bureau
01:21 your credits for once it'
01:25 will default. Once that h
01:27 be sent to a collections
01:29 withhold your tax refund
01:32 benefits. The agency coul
01:35 Some experts warned that
01:37 or deciding to join a dea
01:39 to long-term damage on your credit.
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