A new federal law signed last month will help millions of American employees with their student loans amidst the increasing inflation rate.
New federal law will healp ease student loan borrowers. (Photo: CNET)
Tension Over Student Loans
Millions of Americans who owe student loans are clamoring to cancel their debts amid the increasing inflation rate and impending SNAP benefits. Many groups and advocates are calling for the House and Senate to act on the cancellation of student loans.
In a published article in STUDENTLOAN.LIVE, it is estimated that around 43 million Americans with a combined amount of $1.8 trillion owe student loans. Amidst the increasing inflation rate, it is important for them to either cancel their debts or continue the program.
Meanwhile, the new federal law now allows employers to use a percentage of the earnings of their employees to pay their student loans or debts. In this way.
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What Will Happen to the Student Loan?
According to a published article in FORBES, the White House is now preparing to resume the student loan program in the upcoming months while student loan forgiveness is still hanging in the Supreme Court. Meanwhile, there are companies that are already helping their employees ease the burden of student loans.
One of the first companies that offered the program under the new federal law is Abbott. It helped more than 2,000 employees to slowly pay their student loans through their earnings. In fact, the Internal Revenue Service allowed Abbott to implement the program.
Divisional Vice President for Corporate Benefits and Wellness at Abbott Diego Martinez said, “With this new feature, basically, allows employees to continue to pay their loans and the companies will recognize those payments and will be able to match it with the 401K. It’s a great opportunity for those who are not participating today. It means they can start saving for retirement earlier.”
While the decision for student loan forgiveness is still in the Supreme Court, the new federal law will help employees not only in paying their student loans but also in saving for their retirement.
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