debt relief

1. Cut your connection to the company

2. Alert your lender or repairer

3. Take back control of your student loan account

4. Use existing federal loan assistance

5. Seek legitimate professional help

6. File a complaint

AFCC Debt Settlement Market Share, Analysis by Product, Application, End Use, Regional Outlook, Competitive Strategies and Forecast to 2025

Over the past year, the Department of Education has received tens of thousands of applications for student debt relief from borrowers who say they were scammed by their schools.

The agency has not approved any.

That’s according to data obtained from the Department and released Wednesday by the office of Senator Patty Murray, the ranking Democrat on the Senate Health, Education, Labor and Pensions Committee, which oversees the Department.

BEIJING:

Prime Minister Imran Khan’s call for a debt relief initiative for heavily indebted developing countries served as a rallying call for the world to unite in the pursuit of mitigating the negative impact of the Covid-19 crisis, China Global Television Network (CGTN) reported Wednesday.

In a video message posted on Twitter over the weekend, Imran called on the international community to launch a debt relief initiative to help developing countries prevent the negative impact on their people as subsequent humanitarian consequence of the pandemic.

Chinese media noted that there was a precarious situation in the South Asia region, not only in Pakistan, but also in India and Bangladesh as well as other developing countries elsewhere in the world.

74 million people in Arab world lack handwashing facilities: UN

These people obviously need food, but unfortunately cannot afford it. Their governments, saddled with heavy debt, may struggle to help everyone on the scale required. “Therein lies the significance of Prime Minister Imran Khan’s appeal to the international community,” the report added.

Pakistan’s Ambassador to China Naghmana Hashmi said in an interview with china.org.cn On Wednesday, international financial institutions, with the coordination of developed countries, were to offer emergency grants and soft loans to cushion the developing country from the ensuing economic crisis.

“The present situation [virus-induced shut down of economic activities]therefore calls for greater international coordination and cooperation within the global community to curb and completely eliminate this threat,” Ambassador Hashmi said.

“Perhaps this crisis, colossal as it is, reaffirms our resolve in multilateralism and gives world leaders the clarity and courage to avoid isolationism for good and renew faith in joint efforts for a shared and prosperous future for all,” she added.

Japan urges citizens to self-isolate as reports warn of 400,000 deaths

“This crisis should be a moment of reflection for us to revisit and revise our previous concepts on transnational health, environment and economic issues and reform them in light of emerging realities for the benefit of all humanity” .

Hashmi said China’s success against the virus was a source of inspiration and hope for all countries battling Covid-19. “China has become the only country in the world that has effectively curbed this disease,” she said.

LUANDA: Angola has cut the number of oil shipments it will ship to Chinese state-owned enterprises to repay debt to Beijing as it seeks to renegotiate repayment terms to deal with pandemic fallout, officials said three sources familiar with the matter.

Angola said this week it had requested G20 debt relief and was in advanced talks with some oil-importing countries on adjusting financing facilities, but did not expect any further debt review is needed beyond that.

The global economic downturn due to the coronavirus pandemic pushed Brent oil prices to their lowest levels since the late 1990s and U.S. oil futures into negative territory for the first time in history.

Falling prices have put heavily indebted Angola in a fragile state as it derives a third of state revenue from oil.

By far, its biggest creditor is China. Analysts say Angola has more than $20 billion in bilateral debt, with the lion’s share owed to China. Much of the money was borrowed to build roads, hospitals, houses and railways across the African country.

In addition to its Chinese debt, Luanda secured a $3.7 billion loan from the International Monetary Fund last year and state oil company Sonangol borrowed $2.5 billion from banks between late 2018 and mid-2019. , the IMF said.

A global oil production cut deal led by the Organization of the Petroleum Exporting Countries (OPEC) has compounded Luanda’s woes.

As a member of OPEC, Angola has come under pressure to cut its oil exports from May. The result left the country with fewer and less valuable shipments to divide between paying off its Chinese debt and filling its depleted coffers.

The sources said China’s state-owned Sinochem will receive five shipments in July, up from the usual seven or eight, while Chinese giant Sinopec’s trading arm, called Unipec, will receive none. Unipec usually receives two to three shipments for debt repayment.

Sonangol, the Angolan Ministry of Finance, Sinopec and Sinochem did not immediately respond to requests for comment.

China’s Foreign Ministry said on Wednesday that relevant departments are in contact with Angola over its request.

“These oil-backed loans create a stronger interdependency (between lender and borrower) than traditional financing. This cargo diversion tactic is not new as seen elsewhere,” said David Mihalyi, senior economic analyst at the Natural Resource Governance Institute.

Angola is not the only African country heavily indebted to China. The IMF and ratings agency Moody’s have raised concerns about debt levels in sub-Saharan Africa, particularly vis-à-vis China.

Above: Governor John Hickenlooper signs the Veterinary Education Loan Repayment Program on June 5, 2017, as Dr. Lora Bledsoe, Dr. Mark Stetter, Rep. Joann Ginal, Dr. Sam Romano and Leo look on. Boyle. (Photo provided by Richard Schweigert)

Signed into law by Governor John Hickenlooper on June 5, 2017, the Veterinary Education Loan Repayment Program paves the way for veterinarians to work in rural communities where large and small animals and their owners need services. professionals.

Like most accomplishments in rural Colorado, the passage of the bill is the result of the hard work of a group of people deeply attached to agriculture. With bipartisan support from Representative Joann Ginal (D-Fort Collins) and Senator Jerry Sonnenberg (R-Northeastern Colorado), and contributions from the State Department of Agriculture, the Colorado Cattlemen’s Association and the Colorado Veterinary Medical Association, Dr Mark Stetter and leaders of the College of Veterinary Medicine and Biomedical Sciences successfully pushed the bill through the governor’s office.

“Dr. Mark Stetter, Dr. Ashley Stokes and their team have a comprehensive and holistic view of the state that has really inspired people to work together,” said Dr. Sam Romano, Chairman of the Colorado Veterinary Medical Association and a 1983 alumnus of the CSU veterinary program. “The folks at CSU are doing a wonderful job putting their efforts where they are, helping people and animals.”

With more than 34,000 farms on nearly 32 million acres, Colorado agriculture consistently ranks among the state’s top three industries, providing more than 173,000 jobs, contributing more than $40 billion to the state economy every year and fueling the world with nearly $2 billion. in exported products, according to the Colorado Department of Agriculture.

But there is a serious shortage of large animal veterinarians in rural communities. “I hope this loan repayment program will provide students with additional opportunities to ease their debt burden and move forward in helping our agricultural producers meet their veterinary needs,” the state said. Agriculture Commissioner Don Browna third-generation farmer in Yuma, Colorado.

Trusted professionals

Like their counterparts in human medicine, veterinarians are trusted professionals who help bond a community by caring for animals, supporting their owners, and protecting the food supply. “Vets work very closely with doctors, communities rely on them. This bill helps hold the fabric together in rural Colorado and keeps it from fraying even further,” Romano said. “Beef production and agribusiness are important to this state. Meat and milk don’t appear in King Soopers by accident.

Speaking from his experience running his family farm in Sterling, Colorado, Sonnenberg saw the need for veterinary care first hand.

“Rural Colorado and agriculture are highly dependent on veterinarians,” he said. “It takes a special person to practice in rural areas and many choose another option due to financial obligations after university. I can’t wait to see how many students this will inspire to practice in rural communities.

After the governor appoints a board to review applications, veterinary graduates beginning in 2017 can apply for up to $70,000 in student debt relief. Here’s how it works:

• They must be licensed by an accredited veterinary doctor
  medicine School
• Currently live in Colorado or at one time lived in
  Colorado for at least 3 years
• Agree to practice veterinary medicine for up to four years in
  a rural area of ​​the state that is experiencing a shortage of
  veterinarians appointed by the board to participate in
  the program

“One of the things I’ve learned through this process is that young vets’ debt is almost $150,000, and what’s holding them back from working in rural areas is the need to pay that off. debt,” said Ginal, who earned her doctorate. D. in Reproductive Endocrinology from Colorado State. “There are a lot of farmers and ranchers who need vets, and that’s an incentive for those who want to practice in rural Colorado. I am really proud that we passed this bill.

A new study from the Center for Social Services Research (SSR) at the National University of Singapore (NUS) demonstrates that reducing the number of debt accounts reduces the mental burden of the poor, thereby improving psychological and cognitive performance. This allows for better decision making. Therefore, poverty interventions must be structured to improve psychological and cognitive functioning in addition to meeting the financial needs of the poor.

The study was co-authored by researchers from NUS and the Singapore University of Social Sciences (SUSS). A field study was conducted between January 2015 and August 2017 by Dr Ong Qiyan and Associate Professor Irene Ng from the Faculty of Arts and Social Sciences at NUS, in collaboration with Associate Professor Walter Theseira from SUSS School of Business. The research results have been published in the journal Proceedings of the National Academy of Sciences.

Ease the debt burden of low-income people

Dr Ong explained: “One of the challenges of poverty reduction policies is the fundamental belief that the poor are indebted because of their personal failures. According to this view, those trapped in poverty are believed to lack desirable qualities such as motivation and talent that most people in Singapore possess and value. However, our study shows that because debt impairs psychological functioning and decision-making, it would be extremely difficult for even motivated and talented people to escape poverty. Instead, the poor must either have exceptional qualities or be exceptionally lucky to rise out of poverty. It’s hard to be poor, harder than we thought.

The study looked at 196 chronically indebted low-income people who benefited from the Getting Out of Debt (GOOD) program run by the Singapore-based charity Methodist Welfare Services. It is a one-time debt relief program for households with a monthly per capita income of less than S$1,500 and who had chronically outstanding debt for at least six months. These debts included mortgage or rental, utilities, municipal taxes, telecommunications bills and hire purchase debts. Prior to debt relief, the average per capita monthly household income of participants was S$364.

The research team designed a comprehensive household financial survey that measures participants’ anxiety and cognitive functioning as well as financial decision-making. The survey was conducted before participants received debt relief and three months after debt relief.

Positive effects of debt relief

The study, which is the first of its kind, found that participants experienced less anxiety and improved cognitive functioning, and were able to make better financial decisions three months after receiving debt relief. Between two participants receiving the same amount of debt relief, the participant with more debt accounts eliminated showed more psychological and cognitive improvements.

These results confirm that chronic indebtedness impairs psychological functioning and decision-making. The findings also imply that people view each debt as a separate “mental account” and being “in the red” in many debt accounts is psychologically painful. Thus, thinking about these stories consumes mental resources, increases anxiety and deteriorates cognitive performance. This psychological impact can prevent the poor from making the right decisions to get out of poverty, further contributing to the poverty trap.

Professor Assoc Theseira pointed out that there are differences in the way the poor and the non-poor manage their debts and that the poor need more help. He said: “Although our study is based on the poor, many non-poor Singaporeans also have debt. Why are some people able to easily manage their debts, while others find them stressful and taxing? difference is that the non-poor have the financial resources to manage their debts conveniently and cheaply. We do not hesitate to consolidate our bills on a credit card and pay them automatically. We know that we have enough savings to be able to afford an unexpected expense or the occasional splurge. So we have a lot of resilience to the vagaries of life that the poor simply do not have. Therefore, we should not assume that just because we find that It’s easy to manage debt, we could do the same if we were poor Our mental debt accounting costs are simply lower than debt. you are poor.”

Actionable evidence to reduce poverty

Professor Assoc Ng concluded: “The results of this study open a pragmatic case for designing good debt relief programs for low-income households. First, they help. In fact, not helping households to low-income indebtedness is counterproductive because not doing so leaves them with suboptimal functioning and high anxiety.Secondly, the design of the intervention is critical.As it is the accumulation of debt accounts (more than the amount of debt) that affects functioning, interventions should focus on decreasing the mental burden on low-income households, whose minds are already highly stressed.”

Researchers suggest that policy interventions that rationalize debt would significantly improve cognitive and psychological functioning and reduce counterproductive behaviors. For example, debt restructuring or consolidation could be a more sustainable policy because it is less costly and more effective than simple debt clearance. More generally, poverty reduction interventions should target and reduce the factors that contribute to the mental burdens of the poor.

Researchers are now examining the longer-term effects of debt relief and applying the study’s findings to find innovative solutions that can help the poor.

This research project exemplifies what the NUS SSR aims to achieve – policy-relevant research that collaborates with the social service community to find solutions to Singapore’s social needs. The research team thanks Methodist Welfare Services and participating agencies for their contribution to this important study.

Potentially millions of teachers, social workers and other public servants wasted money repaying loans because a major student loan company blocked access to debt forgiveness to which they were entitled, according to a new lawsuit.

The class action filed Wednesday against Navient by borrowers eligible for civil service loan cancellation, says the company provided these civil servants with incorrect information, extending the time they would need to wait before their loans were canceled in under the program and causing them to spend money unnecessarily on their debt.

“After serving more than 12 million visitors looking for help resolving their debts, we launched Project Debt Box as a secret weapon to help families better manage their credit and reduce their debts,” said Ellis Houck, editor of DebtReliefCenter.org. “These tools were designed to educate and motivate consumers to tackle debt with confidence,” Houck added.

Twelve user-friendly debt assistance tools available upon request

Project Debt Box offers twelve specific tools to help individuals and families budget, manage debt, protect their rights with creditors, and get out of debt. “It even provides valuable debt relief tips that anyone can use on their own – to lower interest rates, reduce payments and resolve debt more cheaply through structured debt programs. debt relief for struggling families,” Houck continued.

“Life Happens” and the Stats Tell the Story

Having served over 12 million people in debt, feedback from visitors to the Debt Relief Center makes it clear that while overspending can lead to unmanageable debt, it is often “life events” that trigger over-indebtedness. “In the past 90 days, of those who have contacted https://www.debtreliefcenter.org/ProjectDebtBox/more than 37% reported job loss or reduced income, while more than 20% said the debt was due to personal, family or medical difficulties,” Houck added.

When debt becomes too much to handle on your own

Clearly, regardless of life situations or events that trigger debt, Project Debt Box is an idea whose time has come. “It’s actually empowering for people when they finally say ‘enough’ and summon the courage to ask for help, kill the monster and put the worries of debt behind them,” Houck said.

For more information about Project Debt Box and how consumers can get help with overwhelming debt, go to https://www.debtreliefcenter.org/ProjectDebtBox/

MEDIA CONTACT: For press inquiries, Walter Burch(818) 208-1492

SOURCE Debt Relief Center

Related links

https://www.debtreliefcenter.org

The recently introduced Family Farmer Support Act 2019 (S.897) will help family farmers reorganize after facing difficult times, which more and more of them are experiencing due to the uncertainty of some export markets, lower prices for some farm and ranch products. and other factors.

Recognizing the unique challenges faced by family farmers, Congress in 1986 established Chapter 12 of the US Bankruptcy Code, which removes some costly reorganization requirements for large corporations.

“Our farmer members have experienced consecutive years of low commodity prices and the consequent low profitability and low farm incomes. As a result, farmers and ranchers are seeing their equity eroded as their debt ratio rises and debt financing hits a 30-year high. The double whammy of record farm debt and poor economic conditions has led many farmers to file for Chapter 12 bankruptcy as an option for debt relief and restructuring,” said Zippy Duvall, president of the American Farm Bureau Federation.

While Chapter 12 has helped many family farmers, its $4.1 million debt limit has kept many others from using it. The Family Farmer Assistance Act of 2019 would allow more family farmers to apply for relief under the program by raising the cap on Chapter 12 operating debt to $10 million.

‘Removing the liability cap and giving more farmers the opportunity to qualify for Chapter 12 bankruptcy provides the restructuring and seasonal repayment flexibility that many farmers need in today’s lagging farm economy’ today and will help align bankruptcy law with the scale and credit needs of American agriculture,” Duval said.

The bipartisan bill, backed by the Farm Bureau, was introduced by Sen. Chuck Grassley (R-Iowa) and co-sponsored by Sen. Amy Klobuchar (D-Minn.), Ron Johnson (R-Wis.), Patrick Leahy (D-Vt.), Thom Tillis (RN.C.), Doug Jones (D-Ala.), Joni Ernst (R-Iowa) and Tina Smith (D-Minn.).

Regarding the cancellation of student loans for millions of Americans, the president said he would not support a proposal that top Democrats want him to support.

President Joe Biden wants to forgive $10,000 of student debt per borrower in response to the COVID-19 crisis, which could wipe out debt for 15 million Americans and reduce balances for millions more.

Federal data shows that more than a third of federal borrowers could see their balances drop to zero if $10,000 were forgiven.

[ RELATED: Biden considering executive action to provide federal student loan debt relief ]

Prominent Democrats, however, want the president to do more. They said canceling $50,000 per person would eliminate debt for 36 million Americans.

They urge the president to take executive action as the economy and Americans battle the coronavirus pandemic.

But Biden said he wouldn’t.

“I’m not going to make that happen,” Biden said. “It depends on whether you go to a private university or a public university.”

Biden and former President Trump have suspended federal student loan payments during the coronavirus pandemic. This suspension will last until the end of September.

For more information, you can go to in line or call the Federal Student Aid Information Center at 800-433-3243.

Biden officials consider action on student debt relief

The Biden administration is considering whether it can take steps to provide student debt relief through executive action, even as it continues to ask Congress to pass legislation to help borrowers and their families.

A tweet from White House press secretary Jen Psaki appeared to go further than her comments during a briefing earlier Thursday, when she said President Joe Biden was counting on Congress to act next. on student loan relief. Biden said he supports up to $10,000 in student loan forgiveness per borrower.

[ ALSO READ: Student debt crisis: Many students overlook community colleges ]

“The President continues to support student debt cancellation to provide relief to students and families,” Psaki tweeted. “Our team is looking at whether there are any steps he can take through executive action and he would be happy to sign a bill sent to him by Congress.”

It came hours after a group of Democrats urged Biden to use executive action to forgive $50,000 in federal student debt for all borrowers. The group, which included Senate Majority Leader Chuck Schumer of New York and Senator Elizabeth Warren of Massachusetts, said it would boost the economy and help close the country’s racial wealth gap.

Biden has previously said he supports erasing up to $10,000 in student debt through legislation, but he has not expressed interest in pursuing executive action. In a briefing before posting his statement on Twitter, Psaki appeared to reject the idea of ​​using presidential powers to wipe out debt, saying Biden had already suspended student loan repayments during the pandemic.

“He would look to Congress to take the next steps,” she said.

Legal scholars have fallen back and forth over whether Biden has the power to deal with loan relief himself, with some saying the move is unlikely to survive a legal challenge.

The Trump administration moved to block broad debt cancellation in early January, issuing an Education Department memo concluding that the secretary had no authority to provide such assistance and that it would be up to Congress.

Schumer said he and Warren researched the matter and concluded “it’s one of those things the president can do on his own.” Past presidents have written off debt, Schumer said, but not on the scale proposed.

Democrats are pushing the issue as a racial justice issue and as COVID-19 relief. They rely on statistics showing that black and Latino borrowers are more likely to go into debt and take longer to repay their loans.

Cox Media Group

One in five businesses in Britain is a ‘zombie business’ struggling to stay afloat after a boom in corporate debt levels during the coronavirus pandemic, a leading Tory think tank has warned.

Calling the chancellor, Rishi sunak, to use the autumn budget to launch a corporate debt relief program, think tank Onward said crippling debt levels accumulated during the crisis will hamper the UK’s economic recovery.

Onward, led by a former senior adviser to Therese May – and with close ties to the Treasury and an advisory board filled with big Tories – debt accumulated during the lockdown could push 4.3% of UK businesses – employing 1.8 million people – to technical insolvency.

He said a debt relief program should be used to allow companies to gradually repay state-guaranteed loans taken out during the crisis, via a surtax on profits and shareholder payments. It would depend on the income level of a business, similar to the student loan system for tuition.

After the lockdown ended economic and social life this spring, plunging the UK economy into its deepest recession on record, more than £ 52 billion was borrowed by UK businesses, thanks to loans from emergency guaranteed by the State.

Onward said rising debt levels meant up to 20% of UK businesses were now ‘zombies’ – meaning their profits only cover the ongoing cost of their debt interest payments . He said companies burdened with debt would be less likely to invest to boost Britain’s economic rebound after the pandemic.

The intervention comes as banks bolster their teams of debt advisers to deal with a flood of corporate insolvencies triggered by the pandemic. HSBC UK plans to almost triple the size of its debt management team by year-end increase in defects.

The bank’s financial distress team, which deals with businesses and individual customers overdue on loans, credit cards or mortgages, has already doubled its workforce to 800 employees since the Kingdom’s shutdown United in March.

“We will probably pass 1,000 before the end of the year,” Stuart Haire, head of retail banking and wealth management at HSBC, told The Guardian.

An interactive debt chart

Staff will undergo mandatory training on how to deal with vulnerable borrowers and some of them will be trained on how to approve a wider range of forbearance options for clients who might otherwise have difficulty repaying. their debts. Several “specialists” will also be present to treat more complex cases.

Lloyds is moving up to 600 employees who previously handled Payment Protection Insurance (PPI) abuse claims to a team in financial difficulty.

NatWest has grown its debt management team from 1,000 to 1,650 since March, while Santander has added dozens of employees to its personal and business debt management units.

The UK’s top four lenders have so far this year set aside a collective £ 15.6bn in provisions for Covid-linked loans – money to cover a potential default. HSBC has set aside $ 3.8 billion (£ 2.9 billion) in the second quarter alone, including $ 1.5 billion related to its UK operations. Lloyds has set aside £ 2.4 billion to cover bad debts in the second quarter.

Debt settlement usually has a negative impact on your credit rating. The negative impact depends on many factors: the current state of your credit, your reporting practices, creditors, the size of the debts being settled, whether your other debts are in good standing, how much less than the initial balance for which the debt is settled, and a host of other variables.

Why debt settlement can hurt your credit score

Why would that have a negative impact, when you ease the burden of your obligations and your creditors get the money? Because strong credit scores are designed to reward accounts that were paid on time according to the original credit agreement before they are closed.

A debt settlement plan, in which you agree to repay a portion of your unpaid debt, modifies or cancels the original credit agreement. When the lender Closes the account due to a change in the original contract (as is often the case after settlement is complete), your score is lowered. Other lenders will likely take note and be wary of giving you credit in the future as well.

Nonetheless, it is possible that reducing the debt burden will lead to a subsequent drop in your credit score. The top credit card account balances and late or missed payments have probably already reduced it somewhat. If debt settlement is the path to a healthier financial future for you, this should be considered.

Let’s take a look at the process in more detail.

How Debt Settlements Work

As you know, your credit report is a snapshot of your financial past and your present. It shows the history of each of your accounts and loans, including the original terms of the loan agreement, your outstanding balance amount against your credit limit, and whether payments were made on time or on time. no. Each late payment is recorded.

You can negotiate a debt settlement agreement directly with your lender or seek help from a debt settlement company. Either way, you agree to only repay a portion of the outstanding debt. If the lender agrees, your debt is reported to credit bureaus as “payment paid”.

Although this is better for your report than a to cushion-it may even have a slightly positive impact if it erases delinquency– it does not have the same meaning as a note indicating that the debt has been “paid as agreed”.

The best case is to negotiate in advance with your creditor so that the account is declared “paid in full” (even if it is not). It doesn’t hurt your credit score as much.

What kind of debt do I have to pay off?

Since most creditors are unwilling to settle debts that are up to date and serviced with timely payments, you had better try and come to an agreement for older and seriously overdue debts, perhaps something that has already been taken to a collection service. It sounds counterintuitive, but in general your credit score drops less as you become more delinquent in your life. Payments.

However, keep in mind that if you have an unpaid debt that was sent to collectors over three years ago, paying it off through debt settlement could reactivate the debt and make it appear like a running collection. Make sure you understand your creditor before finalizing any deal.

As with all debt, larger balances have a proportionately greater impact on your credit score. If you are settling small accounts, especially if you are aware of other larger accounts ready—Then the impact of a debt settlement may be negligible. Plus, settling multiple accounts hurts your score more than settling just one.

Debt Settlement vs Staying Up to Date

In your credit history, the most important weight is given to the history of payments, the current accounts having the most impact.If you are behind on other debts, it’s important to try to keep a newer one first. current account in good standing before attempting to rectify a long overdue account.

For example, if you have a car loan, mortgage, and three credit cards, and one of them is over 90 days past due, don’t try to settle that debt at the expense of other obligations. An unpaid account is better than having late payments on multiple accounts.

It will also seem counterintuitive, but the stronger your credit score is in front of you. negotiate a debt settlement, the greater the fall. The Fair Isaac Corporation, the group behind the FICO score (the most common type of credit score) gives a scenario where a person with a credit score of 680 (who is already overdue on the credit card) would lose between 45 and 65 points after the payment is settled. debt for a credit card, while a person with a credit score of 780 (with no other late payments) would lose between 140 and 160 points.

The bottom line

Focused towards suffering debt can be scary, and you may want to do whatever you can to get out of it. In this situation, a debt settlement arrangement seems to be an attractive option. From a lender’s perspective, it may be better to arrange for payment of some, but not all, of the outstanding debt than to receive none. For you, a debt settlement has an impact on your credit report, but it can help you fix problems and rebuild.

Take into account opportunity cost not to pay off your debt. If you don’t settle for it, your score isn’t affected right away. However, non-payment can lead to late payments, defaults and collection attempts by credit agencies. These scenarios can end up hurting your score further in the long run. Occasionally, debt relief is the best option, but a clean slate is almost always good.

Think about taxes. The IRS generally considers the forgiven or forgiven debt as taxable income.Ask your tax advisor about the possible tax implications of a debt settlement.

WASHINGTON – President Joe Biden plans to take executive action to provide federal student loan debt relief to borrowers nationwide as he continues to call on Congress to take action amid the pandemic of coronavirus in progress.

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In a Twitter post Thursday, White House press secretary Jen Psaki said members of Biden’s team were considering his options.

“The president continues to support the cancellation of student debt to provide relief to students and families,” she wrote. “Our team is examining if there are any steps he can take through executive action and would welcome the opportunity to sign a bill sent to him by Congress.”

The announcement came after Psaki told a press conference that Biden “is calling on Congress to draft the proposal.” Previously, Biden had indicated that he was not sure that as president he would have the power to write off large swathes of student debt.

“I think it’s pretty questionable,” he said in December, according to Politico. ” I’m not sure of it. I probably wouldn’t do that.

A group of Democrats, including Senate Majority Leader Chuck Schumer of New York and Senator Elizabeth Warren of Massachusetts on Thursday urged Biden to use executive action to cancel $ 50,000 from the Federal student loan debt for each borrower. They presented the student loan forgiveness as a social justice issue that would particularly affect students of color and help close the country’s racial wealth gap.

“There’s not much the president can do with the stroke of a pen that will boost our economy more than canceling $ 50,000 in student debt,” Schumer said Thursday at a conference. press with Warren and other progressive lawmakers pushing for student debt relief. “It’s one of those things the president can do on his own.”

Republicans have opposed proposals to write off student loan debt, saying it unfairly shifts the burden from borrowers to taxpayers.

In a hearing Wednesday with Biden’s choice to lead the Department of Education, Sen. Richard Burr, RN.C., urged the president not to pursue the cancellation of student loan debt, which he called it “dangerous and reckless”. Instead, he called on Biden to work with Senators to pass legislation “that dramatically simplifies student loan repayment options, allows borrowers to pay whatever they can reasonably afford, capped at 10 percent of their discretionary income, and having their loan canceled after 20 years. “

Economists have also questioned whether a decision to write off student debt would have the desired effect. A analysis published in October by the Brookings Institution found that nearly 60% of unpaid student debt was owed by people with household income over $ 74,000, while those with the lowest incomes accounted for just under 20% of the debt unpaid.

In one editorial published in NovemberJames Looney, a former Treasury Department official and senior researcher at the Brookings Institution, said that forgetting $ 50,000 in student loan debt for each borrower would cost around $ 1,000 billion and would be one of ” largest transfer programs in US history “.

“And its most important effect would be to improve the finances of workers who have graduated from college, who have already tended to be winners in an economy marked by ever-growing inequalities,” he wrote.

Calls for debt cancellation have escalated after years of rising tuition fees that have contributed to the increase in national student debt. More than 43 million Americans owe a total of $ 1.6 trillion in federal student loans, The Wall Street Journal reported.

In an effort to provide relief shortly after last year’s pandemic, the administration of former President Donald Trump suspended federal student loan payments and set interest rates at zero percent. When he took office, Biden extended the moratorium until at least September 30.

The Associated Press contributed to this report.

Cox Media Group

Allegations of China’s engagement in “debt trap diplomacy” are “kind of nonsense” and “a distraction” from the fact that Chinese infrastructure financing has strengthened the capacities of many countries to low income to achieve better growth, said an American expert.

“We kind of put that issue aside very early on, without going beyond the low level of seriousness in terms of ‘debt diplomacy’ and ‘modern colonialism’ and that kind of nonsense. I mean it’s really a distraction, frankly, from what’s going on, “Sourabh Gupta, senior researcher at the Washington-based Institute for China-America Studies, told Xinhua on Monday.

“China has been providing resource-linked loans to African countries for over 20 years now. It has been a long time. They have a long track record. There is not a single country that is as such indebted to China,” he said, adding that “you have to understand, of course, that these are very capital intensive projects with long gestation periods.”

“There is no such thing as ‘debt trap diplomacy.’ If there are circumstances in which individual countries have certain problems with the amount of debts, which come due at some point, those debts are The payment profiles are being renegotiated, ”Gupta noted.

“In fact, the reason many Western investors have withdrawn from space is that they cannot afford the risk of doing so. And many Western governments have not even provided much infrastructure related funding anymore. “, did he declare. .

But the point is that such an investment is “very important” for many poor countries, because better infrastructure creates “the foundation and the framework” for them to accelerate economic growth, he said.

China has respectively built more than 6,000 km of railways and roads, nearly 20 ports and more than 80 major power plants across Africa, Chinese Foreign Ministry spokesman Wang Wenbin said at the meeting. ‘a briefing at the end of February.

It has signed debt relief agreements or reached a debt relief consensus with 16 African countries. As part of the Forum on Sino-African Cooperation, China has also waived interest-free loans due at the end of 2020 for 15 African countries, Wang said.

Government housing in Langa, Cape Town. (Getty)

• R300million was made available for rental assistance during the nationwide lockdown.
• Deputy Minister of Human Settlements, Water and Sanitation Pam Tshwete said Covid-19 had disrupted budgets in all departments.
• The provincial emergency grant was increased from Rand 377 million to Rand 672 million.

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The government reallocated R300 million for rent relief assistance to social housing institutions during the nationwide shutdown.

This was revealed on Wednesday by the Department of Human Settlements in a hybrid session of Parliament’s portfolio committee on human settlements, water and sanitation.

The department also presented its adjusted budget for fiscal year 2020/21.

READ | SA facing the double storm of Covid-19 and hunger

Deputy Managing Director Joseph Leshabane said an additional R300 million has been reallocated to provide debt relief to borrowers in the affordable rental housing sector in the form of a grant to National Housing Finance Corporation.

“We have introduced two specific additions to our entity transfers. We are introducing an allocation of R300 million for affordable rent relief and another R300 million for affordable rent relief for tenants who do not stay. in social housing. This is a work in progress, and we will come back to the committee once this framework is finalized, “he said.

Leshabane said more money had been allocated for emergency housing.

“What you will see is the provincial emergency grant which has increased from Rand 377 million to Rand 672 million.

“Again, this is a very important adjustment because for us emergency housing under these circumstances has become quite central in the modernization of informal settlements,” he said.

Disturbances

Leshabane also added that consultations with the National Treasury are ongoing.

“On our schedule, we are on schedule to finalize our consultations, including the Treasury, by the end of this month.

“I say this because we now need to go back and review all the relief measures that are now available for households, UIF and other issues.

“Then we had to reconcile all of that to avoid a double-dipping scenario; it turned out to be much more intense than we had originally planned, but we have the proposal and the project is on the table. There is still work to be done. ,” he said.

READ | Lockdown: Dlamini-Zuma asks SCA for leave to appeal High Court ruling

MEPs also voiced concerns about the reduction of R377 million in the land title restoration grant.

Deputy Minister of Human Settlements, Water and Sanitation Pam Tshwete said Covid-19 had disrupted budgets in all departments.

“We have to do things differently in the future because of Covid-19,” she said. “We take note of the fact that some budget cuts will have a negative impact on us.

“We fully understand that such cuts were made necessary by Covid-19 and we will do what we can with what we have. We spend what we are given.

“We will be monitoring municipalities and provinces, particularly on the issue of title deeds. We know that provinces do not always use this grant.”

The committee also called on the department to speed up the modernization of informal settlements.

On September 16 and 17, a team of higher education decision makers from across Ohio will meet to discuss opportunities for their state. As part of this convocation, which is facilitated by the National Governors Association (NGA), the team will explore opportunities to support students with a college degree but without a degree who carry public or institutional debt upon their return to complete their studies. . As they discuss options, the team will hear from some neighbors to the north, including Wayne State University.

“I am delighted to discuss our Returning warrior debt relief program at Wayne State University, where we created a pathway for returning students to graduate by ‘learning’ how to get out of overdue university debt, ”said Wayne State University Associate Vice President of Dawn Medley Enrollment Management. “I am pleased to present alongside Melanie D’Evelyn of the Detroit Regional Chamber. Mélanie directs the Detroit Drives Degree (D3) program, which we are partnering with to enhance the talent pool in our Detroit area. “

In June 2019, the NGA launched the Educate for Opportunities Project focusing on supporting state efforts that link and align their post-secondary institutions with the needs of the state’s workforce and emphasizing adult engagement in educational pathways and training. This project is facilitated by NGA with funding from the Strada Education Network. Ohio is one of six states participating in this project.

Dawn Medley was invited to participate in a roundtable focused on Institutional Debt Cancellation to help Ohio policymakers gain a better understanding of how Wayne State’s program works and how such a program could possibly be put together. implemented in higher education institutions in Ohio, ”said the Ohio Vice Chancellor. Academic Affairs at the Ohio Department of Higher Education, Stephanie Davidson.

“WSU is a key partner of the Detroit Regional Chamber in its D3 initiative, which is a collaborative effort to increase the post-secondary pass rate to 60% by 2030, while reducing by 50% l education equity gap for the region’s black and minority population. ”Said D’Evelyn. “By leading WSU’s nationally recognized debt relief effort, Dawn’s equity mindset is increasing access to education for the people of Detroit.”

Higher education institutions are the target audience for this panel. The panel will take place at 3 p.m. on September 16. Guests must Register to participate, and registrations will remain open after the start of the panel for those who arrive late and have not registered.

SACRAMENTO (CBS SF) – Gov. Gavin Newsom confirmed on Thursday that California suffered the highest number of deaths in a single day from the COVID-19 emergency, while also announcing two new measures that would provide severe debt relief for Californians financially affected by the pandemic.

On Thursday afternoon, Newsom made the grim announcement that Wednesday marked the deadliest day for COVID-19 patients with 115 additional confirmed deaths. The state’s death toll is now 1,469, and public health officials have confirmed 37,369 cases statewide.

READ MORE: CDC panel recommends Pfizer COVID vaccine for children ages 5 to 11

FULL COVERAGE: CORONAVIRUS PANDEMIC

The new deaths were an 8.5% increase from the previous day.

On the bright side, Newsom said that for the first time, hospitalizations and intensive care cases were down, with hospital admissions falling 4.4% and intensive care cases 1.2%. The state now has 3,343 coronavirus patients in hospital and 1,204 in intensive care.

The governor opened Thursday’s COVID-19 response briefing focusing on the debt and financial support offered in stimulus payments. Newsom said 21 companies that handle student loans will give a 90-day grace period on payments with no late fees.

Newsom credited Illinois Governor JB Pritzker for leading efforts to support borrowers who were not covered by debt forbearance in the $ 2.2 trillion federal aid law, relief and economic security (CARES) against coronaviruses. Pritzker on Tuesday announced a similar order for residents on private and non-federal student loans.

The deal with these companies will provide 1.1 million Californians with student loan debt with a breach of those obligations.

Newsom also said it signed an executive order prohibiting debt collectors from seizing stimulus payments from funds. The order will also be retroactive, requiring debt collectors to return any money that had been seized from previous stimulus payments.

However, Newsom noted that the decree would not protect those who must keep children or spousal support.

READ MORE: COVID vaccine: CoCo County prepares to rapidly distribute vaccines for 5-11 year olds

Newsom also confirmed that 16 doctors are leaving the state to provide care in New York City, where the coronavirus continues to be concentrated. He praised UCSF, hailing the school for sending 20 doctors and nurses to New York offer help earlier this month.

“One of the great advantages of these doctors going to the front lines in New York is what they will bring back, which is a deep understanding and knowledge of what is happening at the most acute point of the disease. crisis in this country, and bring that to bear here in the state of California, ”Newsom said.

The governor thanked residents of the state who had joined the Californians For All initiative announced earlier this week. A total of 22,000 people signed up to the website on the first day of its launch.

Briefly referring to the planned increase in testing that had been the focus of Wednesday’s update, Newsom referred to a conversation with President Trump and confirmed that 90,000 promised test swabs were arriving in California for distribution on Friday with 10,000 additional swabs still awaited. Swabs are needed to administer any of the types of coronavirus tests.

Newsom also warned residents of the state that with the weather forecast indicating another hot and sunny weekend, now is not the time to rebel against the stay home order.

“Look, we’re entering a very hot weekend, the nicest weekend as far as warm weather you like, since January, or probably since last summer in the state of California. And that means that people tend to want to go to beaches, parks, playgrounds and hike, “Newsom said.” And I predict there will be a significant increase in volume. But I also think that s ‘there are, and people don’t practice physical distancing, I’ll be announcing in a week or so that those numbers are going to go up. I don’t think anyone wants to hear that.

“As this disease continues to spread, we must continue to be vigilant,” he concluded.

Raw video: Governor Gavin Newsom comments on maintaining social distancing and shelter-in-place orders

NO MORE NEWS: Supply Chain Issues: How Global Shortages Affect Consumers Nationally

As a young high school graduate, Joseph Schettler dreamed of working for the FBI or becoming a forensic psychologist. He took steps to make those dreams come true.

Schettler became the first person in his family to attend college, enrolling in ITT Tech’s criminal justice program in 2006 with the school’s confidence that he would surely find a job in his field. Two years later, Schettler earned an associate’s degree. But he soon realized that the time and money he had devoted to his studies had not brought him closer to a job.

The office further said the company broke a second law – the Consumer Financial Protection Act – when it billed debtors without settling their debts. The agency alleged that Freedom charges fees – sometimes thousands of dollars – even when borrowers themselves negotiate settlements with their creditors.

Further, the bureau alleges that the company has kept from its customers the fact that several major banks have an ongoing policy of never working with a debt settlement company.

Freedom also asked consumers negotiating their own settlements to “expressly mislead” their creditors when asked if they were enrolled in a debt settlement program, the office alleged.

In response to the settlement, Freedom said it was working with the office to resolve issues raised in the lawsuit.

“In resolving the case, we have agreed to make some changes to our disclosures and policies to improve our program, many of which were implemented when the case was first filed,” Freedom said in a statement. communicated.

This is how debt settlement or debt relief service programs typically work: the company promises to work on your behalf, claiming they are better able to negotiate a deal to reduce your unsecured debt. , like what you might owe on a credit card.

Consumers are often told to stop communicating with their creditors. As a general rule, clients are also advised to stop any payment they might make and put the money in a bank account with the intention that the debt settlement company will offer creditors a lump sum offer lower than that. which is due.

One of the biggest problems with debt settlement programs is that they can encourage consumers who manage to keep up with their payments to default on their debts. Debtors who are already in default are told that they must also make payments to a bank account so that they too can accumulate enough money to make a lump sum offer to settle their debts cheaply.

This strategy makes sense on paper. Creditors or the collection companies they hire can spend a lot of time trying to get what is owed to them. So, they may be willing to accept a lump sum.

But for those who are desperate to get out of a financial hole, working with a debt settlement company can make matters worse. When you stop paying your creditors under a debt settlement plan, you risk triggering penalties, higher interest rates, and other fees. So, while you wait – sometimes for years – to see if debts can be paid off for less than you owe, your debt burden may increase. Ultimately, as was the case with some Freedom clients, many creditors may refuse to negotiate with debt settlement companies and take legal action against you.

Debt settlement doesn’t come cheap either.

The Consumer Financial Protection Bureau said Freedom’s fees typically range between 18 and 25 percent of the debt amount. This means that you have to weigh the fees you pay with the growth in your debt, as this could outweigh any savings you might make. Additionally, many people fail to make payments to make up a lump sum offer.

“Debt settlement and similar programs offered by companies like Freedom often do more harm than good and turn out to be a waste of money,” Andrew Pizor, lawyer for the National Consumer Law Center, said in a statement. . “Consumers should speak directly to their creditors and conduct their own debt settlement negotiations, or they should speak to a qualified consumer bankruptcy lawyer. “

Overall, the debt settlement industry has been plagued for decades by shady practices and blatant scams that benefit consumers struggling with their debt load, said Robert Lawless, Max L. Rowe at the University of Illinois College of Law.

“People have to be very careful when choosing a debt relief provider,” Lawless said.

If you want low cost debt relief, I suggest you get help from a nonprofit credit counseling agency. To find a local agency, go to the National Foundation for Credit Counseling website – nfcc.org. The agency can help you set up a debt repayment plan for a relatively low monthly fee.

There is no shortcut to debt relief. So don’t believe the hype.

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Michelle Singletary can be reached at michelle.singletary
@ washpost.com.

As we begin the new year, it is a good time to consider some initiatives in higher education that deserve more attention and wider adoption. Colleges have recently introduced creative policies in areas such as financial aid, college programs, and student success. This month, I plan to highlight a few of those efforts in the hope that they will be seen as models for testing in other institutions. The first is the Haverford College student loan repayment program.

Haverford College introduced a new financial aid program, which pays the first year of loan obligations for students in its class of 2019. According to report by Inside higher education (IHE), under the new program, 12 Haverford graduates (out of a total of 318) will be the first to receive debt relief, ranging from $ 900 to $ 1,500 each. They will also be able to request two additional years of loan repayment.

Here is the institutional context of the Haverford initiative. It follows earlier college decisions to 1) waive the promise that its students would not have to take out loans to pay for their education and 2) end its unnecessarily admissions policy and admit a small number of students in part according to their abilities. to pay.

The college still promises students from families earning less than $ 60,000 a year that they won’t have to take out loans to pay for their education. Those who earn more may need to take out loans, but they should still be less than what is allowed within federal limits. According to IHE, Haverford borrowers average about $ 13,600 in loans.

The end of the no-loan policy went into effect for first-year students enrolling in 2015, expecting to graduate in 2019. In the breach came Steven M. Jaharis, a board member of Haverford administration, whose family foundation donated $ 2 million to endow a fund that would help pay off graduate debt.

Cited in IHE, Jaharis said, “Everyone on the board was disappointed when we couldn’t maintain the no-loan policy. I felt we needed to let the students know that we care about this issue and that it is a big deal.

Haverford’s reimbursement program has several requirements.

• Recipients must be eligible for financial assistance based on need.
• They may not have access to other loan deferral options, and they must be unemployed or on a “low income trajectory due to choice of occupation”.
• The new endowment will cover loan payments only up to the amount a student could borrow under Haverford’s financial aid policies. In other words, repayments are capped – if students borrow more than what the college recommends, they won’t be covered for the “excess” amount.

The Haverford program could become a form of financial aid to emulate for other institutions, albeit with adjustments tailored to the unique circumstances encountered in specific schools. As the most obvious example of the importance of the institutional context, the average debt of Haverford graduates in 2019 was just under $ 14,000, less than half the obligation of the typical bachelor who takes out student loans.

However, the benefits of the program are manifold.

• Loan repayments are only made for graduate students, thus providing – unlike scholarships – a strong incentive for college completion;
• Annual reimbursement amounts can be funded from small endowments, making program subscription accessible to more donors;
• Limiting repayments is a useful constraint for students who borrow more than they need to cover their studies;
• The criteria are of particular benefit to students who wish to enter occupations which may not be highly remunerative but which serve an important public interest.
• The possibility of extending loan repayments for a second and third year is part of a process of permanent contact between the alumni and the college.

It remains to be seen to what extent other institutions will adopt the Haverford model, but the idea has several clear merits as a complement, if not a substitute, for institutional support. This is another example of how even relatively small amounts of aid can make a big difference when based on financial need and available at the right time.

Then, in Part 2, the University of Rhode Island faces budget cuts by investing heavily in student success.

As a father of 25 and 17 year old sons, I love Millennials and Gen Z. But it is increasingly difficult to feel sympathy for children born between 1981 and 2012 (to give Where to take).

It is not all – or perhaps even above all – their fault. Much of the problem stems from the way the media covers the plight of young Americans, particularly the allegedly catastrophic amount of student debt they incurred just to get a college degree which is now, we are told, a almost insignificant paper which no longer “automatically” guarantees admission into the “middle class”. A recent story in The Wall Street Journal illustrates this approach. It’s titled “Playing catch-up in the game of life: millennials approach the Middle Ages in crisis” and promises “New data shows they are worse off financially than any previous living generation and may never get over it.” Most of the time, it highlights individuals and couples who have tons of student debt and as a result cannot buy a house, have children, or even get married.

In fact, it is far from clear that the raw economy is driving, say, the reduction in fertility rates, which have been declining for decades all over the world and are linked to the increase in fertility. female autonomy. And despite all the talk about generational poverty, it’s not immediately clear that all is darkness. According to a 2018 Pew study, millennial households are now “correspond to the highest household income for their age group. Add in higher rates of higher education, and the future actually looks bright. And it seems the millennials Maybe better in different ways that Gen X was at the same stage of life.

Either way, there is so much wrong with the student debt narrative that it’s hard to know where to start. First, more people, including more low income people, go to college like never before, and graduates have much higher lifetime incomes and much lower unemployment rates than people with just a high school diploma, associate’s degree, or a few years of university. Like economist Scott Winship wrote, “If we count growing student debt on the debt side of the ledger, shouldn’t we count the value of the debt-financed asset (human capital) on the asset side?” And despite the total student debt of $ 1.5 trillion, the average and median amounts owed by students are barely mind-boggling.

According to data from Lending Tree, for example, around 70% of the class of 2018 took out loans; their the median monthly payment was $ 222. The average loan amount (which will be higher than the median) for graduates with debt was around $ 30,000. According to Pew:

The median borrower with unpaid student loan debt for their own education owed $ 17,000 in 2016. The amount owed varies widely, however. A quarter of borrowers with unpaid debt reported owing $ 7,000 or less, while another quarter owed $ 43,000 or more.

Most borrowers therefore act responsibly. College graduates earn about 80% more than high school graduates, so going into debt isn’t stupid. And even though the university has become more expensive, the salary premium remains high enough that the number of years it takes to recoup the price of the university has not increased for decades, according to work done by the New York Federal Reserve:

It is extremely difficult to get straight answers on many aspects of education debt. Often it is not clear whether the debt for a given year includes loans for graduate studies, including law school or medical school, which are not only much more expensive but also much more profitable and optional. Ninety percent of law school graduates borrow, for example, and the average debt load is $ 127,000 for students in private schools and $ 88,000 for those in public schools. Three quarters of medical students take out loans of around $ 200,000 on average, but the typical doctor earns between $ 150,000 and $ 312,000 per year, so the debt is not particularly difficult to pay off. Should we feel bad for lawyers and doctors?

Obviously, it’s best to graduate from college with little or no debt. But media accounts inevitably revolve around people with mind-boggling debts that are nobody’s fault other than their own. Worse yet, reports rarely contain detailed information that would give the reader a better idea of ​​an individual’s life choices. Yes, relatively cheap loans undoubtedly induce some people to go to college who would not if they had to pay higher interest rates (if student loans were dischargeable as part of a procedure). bankruptcy, interest rates – even those offered by the federal government, which pays about 90 percent student loan dollars – would be much higher). But at the end of the day, the borrower must take responsibility for their actions. I say this as someone who paid for their undergraduate and graduate education and sweated blood every time I signed up for a student loan. Youth is a time of great madness, yes, but you know exactly how much you’re going to pay back for exactly how long.

In The Wall Street Journal story we meet a 32 year old woman living in Chicago who “is a single tenant and earns $ 75,000 per year [working for the city]. She also owes $ 102,000 in student loans and $ 10,000 in credit card debt. His salary is actually quite good, especially for someone his age. Median household income for Chicago is about $ 53,000 and the median per capita income is $ 33,000. She has thrice average student debt, but we have no way of knowing where it went in college or if there’s a college degree in there.

Earning $ 75,000 per year comes down to $ 6,250 per month. Suppose she pays 33% of total taxes, which brings her monthly take-home pay to around $ 4,200. Assuming she pays 7% of her loans, she has to pay about $ 1,200 per month, which leaves her $ 3,000 to cover rent, food and everything else. It’s not great, but it is doable. In real dollars, that’s about $ 20,000 more than I took home in the mid-90s when I started trading. Raison and lived in Los Angeles with a spouse who was not working and a 1 year old son. Does she have roommates? Why did she spend so much on college? Reading this story reminded me of last year Time cover story on teachers who should have done two or three extra jobs because they are “not paid for the work [they] to do. Much of household finances are tied to spending levels, which are never really discussed.

We also meet a couple in their thirties who “run a financial advice website, reducing their combined student debt by $ 377,000.” What? One of them is a lawyer, so let’s assume that up to $ 127,000 in debt was spent on getting a law degree from a private school. there is still a quarter of a million dollars of student debt to be taken into account. The story does not provide any mitigating circumstances and, to be honest, I can’t imagine any that would explain such a situation other than through some really silly choices. Should we as a society be prepared to forgive such mistakes through universal debt relief programs offered by politicians such as Sens. Elizabeth Warren (D-Mass.) And Bernie Sanders (I-Vt.)? It seems like an insult and an outrage to everyone, parents and students, who scrimped and saved up and went to schools they could afford.

In a Associated press article About Robert F. Smith, the billionaire who just announced he would pay off all student debt for the 2019 class of Morehouse College, we meet a 22-year-old finance student with an inexplicably and shocking amount of student debt – $ 200,000, an amount that would take him 25 years to pay “at half of his monthly salary, according to his calculations.” When Smith made his promise at the start of Morehouse, the student cried.

“I don’t have to live on peanut butter and jelly sandwiches. I was shocked. My heart sank. We all cried. Instantly it was like a burden had been lifted off. . “

I’m sure not the only one wondering how the hell someone – a finance student, of all people – ended up $ 200,000 in hock by graduation. Morehouse’s full list price is nearly $ 50,000 per year, but the the average net price is $ 32,000 once grants and scholarships are factored in. Even if he gave loans over the four years, it should be $ 128,000, not $ 200,000. Specifically, who would do such a thing? The average net price nearby State of Georgia costs $ 15,000. Borrowing $ 200,000 for a bachelor’s degree is simply inexplicable.

I have written many times about how young Americans are indeed fucked by my own generation, the Baby Boomers. Old age rights are a brutal form of war of generations which systematically steal from the relatively young and poor to give to the objectively old and rich. The 2008 financial crisis begged the young people again, who also grew up in a century with below average economic growth (thanks, persistent deficit spending and massive national debt).

Seniors in America have a lot to explain, and we need to reform all kinds of policies that slow economic growth and direct all kinds of unearned wealth to people who don’t need it. But young Americans – at least those who manage to wreck their finances royally on graduation day – must also be held accountable.

Devex: Religious leaders present recommendations to G-20
“An international group of religious leaders and advocates this week presented a series of recommendations to Saudi Arabia, which chairs the G-20, ahead of the group’s high-level summit with world leaders which begins on November 20. The G20 Interfaith Forum brings together religious leaders and religious institutions from around the world to provide recommendations to heads of state on a multitude of development topics. Initially formed to tackle global economic problems, the G-20 has been pressed to address broader international challenges such as climate change and gender equality… ”(Welsh, 19/11).

The Guardian: “People are suffering”: G20 calls on private lenders to suspend debt repayment
“… Governments in the developing world are struggling to adjust to widespread financial losses from Covid-19, made worse by debt repayment to private creditors. The grouping of the biggest economies, the G20, is meeting in Saudi Arabia this weekend, and will urge private lending institutions to halt debt repayment, ideally to allow more spending to fight the pandemic … ”(Michaelson , 20/11).

Reuters: China says it has given $ 2.1 billion in debt relief to poor countries
China has provided debt relief to developing countries of a combined value of $ 2.1 billion under the G20, the highest among the group in terms of the amount deferred, the G20 said on Friday. Minister of Finance of the country, Liu Kun… ”(20/11).

The KFF Daily Global Health Policy Report summarized news and information on global health policy from hundreds of sources, from May 2009 to December 2020. All summaries are archived and available through search.

Pakistani Prime Minister Imran Khan warns MORE people in developing countries will starve under coronavirus containment than will be killed by disease as he urges Western governments to forgo debt repayment

• Pakistan has recorded 5,183 infections, with 88 deaths, so far in the pandemic
• Its already struggling economy has been hit hard by nationwide lockdowns
• They crippled economic activity and caused a lot of unemployment
• Prime Minister Imran Khan said he fears people in the developing world will starve
• He said he called on world leaders and the UN to announce a debt relief initiative
• Learn more about how to help those affected by COVID

By James Gant For Mailonline

Posted: 01:03 BST, April 13, 2020 | Update: 02:04 BST, April 13, 2020

PARIS, May 19 (Reuters) – The number of countries receiving Paris Club debt relief this year under a deal with the G20 is expected to rise after the Club – a group of state creditors – clarified the conditions, said a source from the French finance ministry. Tuesday.

The Group of 20 Major Economies and the Paris Club, an informal group of state creditors coordinated by France’s finance ministry, agreed last month to freeze the debt payments of the 77 poorest countries this year in order to free up money to enable them to fight the coronavirus pandemic.

However, some debtor countries have been reluctant to sign, fearing it could hurt their credit rating after rating agencies said a default by private creditors who agreed to suspend debt payments alongside it. the Club could be considered a fault.

Kenya’s finance minister told Reuters last week that this was one of the reasons Nairobi would not apply.

So far, the Paris Club has only signed agreements with the Caribbean islands of Dominica and Grenada, as well as with Mali and Nepal, the French source said.

But the Club has now made it clear that candidate countries can specify that they want relief only on their debts to public creditors.

“We have about 20 more in the process of finalizing documents to sign agreements and we expect another dozen to make requests in the coming days,” the source said.

Countries likely to sign soon are Cameroon, Democratic Republic of Congo, Republic of Congo, Ethiopia, Pakistan and Mauritania, another source close to the matter said.

Usually, the Paris Club asks borrowing governments to seek the same terms for debt repayment from private sector creditors.

Aside from this exception to this rule, rating agencies now understand that the debt relief program is not negative for ratings, the source said.

Countries eligible for the program have a total of $ 36 billion due this year, made up of $ 13 billion owed to other governments, $ 9 billion to private creditors and the remainder to multilateral development lenders. (Reporting by Leigh Thomas; Editing by Kevin Liffey)

Posted: Sep 15, 2020 / 11:16 AM CDT
/ Update: Sep 15, 2020 / 11:37 AM CDT

JACKSON, Mississippi (WJTV) – Mississippi Attorney General Lynn Fitch announced that the state has reached a deal to get $ 1,763,071.28 in debt relief from former ITT Tech students in Mississippi. The funds are part of a settlement with 48 attorneys general and the Federal Consumer Financial Protection Bureau.

“Today’s settlement will bring more than $ 1.7 million directly into the pockets of students targeted by the predatory actions of PEAKS Trust, many of whom continue to suffer the economic impacts of astronomical interest rates,” said Fitch. “This regulation should serve as a warning to other bad actors who take advantage of financially vulnerable Mississippians. My office will continue to seek justice, ensuring that there are serious consequences for illegal actions against consumers in our state. “

The settlement is with PEAKS Trust, a private lending program managed by ITT and affiliated with Deutsche Bank entities. PEAKS was formed after the 2008 financial crisis when the private sources of loans available to for-profit colleges dried up.

ITT had operated campuses in Madison, Mississippi. The for-profit college worked out a plan with PEAKS to provide students with temporary credit to cover the gap between tuition fees and federal student aid and the total cost of education. ITT filed for bankruptcy in 2016 following investigations by state attorneys general and following action by the US Department of Education to restrict ITT’s access to federal aid to students.

Students will not have to do anything to benefit from debt relief. The notices, which will be sent directly to those affected, will explain their rights under the regulation. Students can direct questions to PEAKS at [email protected] or 866-747-0273, Where the Consumer Financial Protection Bureau at (855) 411-2372.

In June 2019, Mississippi was also part of a $ 168 million settlement that relieved the debt of 18,664 former ITT students. This deal was made with Student CU Connect CUSO, LLC, which also offered loans to fund student tuition at ITT Tech.

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SACRAMENTO, November 11, 2020 – California Attorney General Xavier Becerra today sent a letter to Education Secretary Betsy DeVos and Acting Defense Secretary Christopher C. Miller requesting updates on their efforts to relieve military personnel of their obligation to pay interest on student loans while serving in a combat zone. In 2008, Congress waived all interest charges for direct student loans for military personnel serving on active duty during a war, military operation, or national emergency, and receiving hostile fire or danger allowance. imminent. However, the Office of Consumer Protection estimates that in 2015, military borrowers eligible for the rebate paid more than $ 100 million in unnecessary interest charges on their federal student loans. In today’s letter, Attorney General Becerra urges Secretary DeVos and Acting Secretary Miller to do everything possible to ensure that payments on unnecessary interest charges are automatically refunded and eligible military personnel are protected. against illegal overcharging in the future.

“Today we recognize the service and sacrifice of service members, veterans and their families. These American heroes have stood up for us, so in any way we can, we have to support them ”, said Attorney General Becerra. “Historically, the Department of Education has failed to honor its commitments to our country’s military, including the obligation to provide interest relief on student loans to veterans. Every dollar counts for a serviceman with past due student loan debt. I am seeking information from the Pentagon and the Department of Education to determine whether these agencies are fulfilling their obligations to those who have dedicated their lives and careers to serving and protecting our country. It’s time to turn the corner.

Last November, the Department of Education and the Department of Defense announced a proposed data matching program that would provide automatic debt relief to eligible veterans. Since then, it is unclear whether, and to what extent, this program has been implemented or used to provide repayments or other debt relief to eligible borrowers. In the letter, Attorney General Becerra calls on agencies to confirm whether an automatic debt relief program has been implemented for eligible borrowers. If the program has been implemented, the letter requests a description of the program, as well as critical information regarding the administration and effectiveness of student loan relief for eligible military personnel. If the program has not yet been implemented, the letter asks for an explanation of why and seeks information on the number of borrowers who are eligible for the relief but have not yet received it.

Attorney General Becerra is committed to protecting and supporting our military families. In May 2019, Attorney General Becerra sent a letter urging the Department of Education to pay off student loans for tens of thousands of disabled veterans as part of their service by developing an automatic release program. In June 2020, the Attorney General Becerra filed a complaint against Secretary DeVos and the Ministry of Education for his failure to implement the extended civil service loan waiver program. In addition, in October 2018, Attorney General Becerra sent a letter to the Consumer Financial Protection Bureau Condemning Acting Director Mick Mulvaney for removing the agency’s oversight of lenders under the Military Loans Act. In addition, the Attorney General’s office was instrumental in advocating for an automatic closed-school discharge provision in the Obama-era borrower defense rule, which was passed as a result of a negotiated regulation involving our office, and which provided automatic discharges to student borrowers who had attended the ITT technical institute and Corinthian colleges.

A copy of the letter is available here:

https://oag.ca.gov/sites/default/files/Becerra%20to%20Secs%20DeVos%20and%20Miller%20re%20Combat%20Veterans%20Student%20Loan%20Interest%2011%2011%202020.pdf

This is an archived article and the information in the article may be out of date. Please look at the history’s timestamp to see when it was last updated.

SAN DIEGO – Tenants struggling to pay their rent are calling on state lawmakers to extend the moratorium on evictions and give debt relief to some tenants and landlords before protections expire at the start of the season ‘next year.

Protesters gathered in the Logan Heights neighborhood near the home of Congressman Ben Hueso, D-San Diego on Wednesday, demanding he act at the legislative level.

Most protesters are struggling to pay their rent, and many say they have lost their jobs. If state lawmakers don’t act quickly, it will become a life-and-death situation for many struggling families, they say.

They are calling on Hueso to defend bills that give debt relief to eligible tenants and landlords and extend protections against evictions, most of which are due to expire on February 1.

Patricia Mendoza was part of the group imploring lawmakers to act.

“We’re probably going to end up living in my little white van, and it’s your worst nightmare, you know, as a parent you have to protect your kids and you have to do whatever you can,” Mendoza said.

As part of the protest, a few dozen community members set up a Posada, a Mexican holiday tradition where actors reenact Mary and Joseph in search of a room at the hostel. It’s a tradition that currently resonates with many local families, including Gabriel Guzman and his family who were kicked out by what he calls a “loophole” in the system.

“I have no idea we’re both unemployed, our kids are coming home from school,” Guzman said of where he and his family will be living next.

Hueso released a statement, which reads in part: “In the next legislative session, I will work diligently with my constituents and fellow legislators to keep a roof over the heads of families and prevent further new ones. deportations in our state. “

But there is a need for relief in the community, protester Carlos Hernandez said.

“Businesses, many big business owners, they’re relieved, they’re getting help,” Hernandez said, “while we – the hardest hit communities – are being left behind.”

ATHENS, Greece: The International Monetary Fund said on Monday that Greece’s huge public debt remains sustainable over the medium term despite unprecedented uncertainty in all sectors of the economy due to the pandemic.

After the completion of a new round of follow-up talks with Athens, the IMF said Greece’s economy is expected to contract 9.5% this year before rising 5.7% in 2021. Public debt will reach a record 208% of gross domestic product this year before declining to 199% in 2021 from an already high level of 181% in 2019.

The IMF, in collaboration with European creditors of Greece’s bailout, continues to monitor the economy beyond the end of the acute financial crisis of 2010-2018 and the bailout loan program that has kept the country on hold. afloat after losing access to international markets.

He said the medium-term economic recovery would be supported by a pickup in private consumption, investments linked to privatization and the first rounds of subsidies (from the European Union), and higher merchandise exports.

The IMF added that the increase in public debt vulnerabilities would be mitigated by EU funds and the government’s large liquidity reserve, which would translate into adequate repayment capacity.

He said the pandemic brings unprecedented uncertainty and downside risks to all sectors of the economy, amplified by Greece’s legacy of crisis.

The main risks stem from a protracted pandemic that would derail the expected rebound in tourism and a significant deterioration in bank balance sheets, the IMF said.

Tourism accounts for up to a fifth of the Greek economy, but has been hampered by the pandemic this year.

Monday’s statement also praised the Greek government for its response to the pandemic, which it said has been swift, significant and appropriately targeted at hard-hit households and businesses.

Also on Monday, creditors of the EU bailout for Greece approved the release of an additional 767 million euros ($ 916 million) in Athens debt relief measures.

Disclaimer: This article was posted automatically from an agency feed without any text changes and has not been reviewed by an editor

Read all Latest news, latest news and Coronavirus news here

Pakistan has secured a $ 1.7 billion debt relief deal to help offset financial hardship caused by the coronavirus pandemic, officials said on Monday.

The deal, after months of negotiations with creditors, will include a moratorium on debt payments for large parts of the current fiscal year and help ease the cash-strapped country’s massive financial obligations.

“The Pakistani government has successfully negotiated and concluded rescheduling agreements with 19 bilateral creditors, including members of the Paris Club,” the country’s economic ministry said in a statement.

The ministry went on to describe the deal as “timely” which will help save “the lives and livelihoods of millions of people.”

The Pakistani economy was already on life support before authorities began shutting down large segments of the economy in the spring as a series of lockdown measures were put in place to combat the spread of the coronavirus.

Prime Minister Imran Khan has repeatedly called for the cancellation of international donor debt as tax revenues collapsed, inflation soared, the currency was devalued and budget deficits widened.

Earlier this year, the G20 and the Paris Club agreed to waive most of the debt payments of the world’s poorest countries in 2020, as large-scale virus lockdowns turned the global economy around.

In June, Pakistan was named as one of the few countries to secure a moratorium on debt repayment from the Paris Club in a bid to mitigate the economic impact of the coronavirus crisis.

To add to the country’s woes, Pakistan also faces growing questions about the massive amount of debt it has incurred in recent years on infrastructure projects funded by China.

Beijing has regularly poured money into Pakistan, investing more than $ 50 billion through the China-Pakistan Economic Corridor which has improved infrastructure, electricity and transport links across the country.

Islamabad, Pakistan | AFP

Personal finance expert Maya Fischer-French on the pros and cons of turning to credit insurance versus opting for debt relief leave.

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Also read:

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Covid-19 and nationwide lockdown to slow its spread are wiping out the economy.

South African consumers – already heavily indebted before the epidemic – will face serious difficulties in the months and years to come.

Many will lose their jobs and their ability to repay their loans.

There are two options you may want to consider at this time:

• Access credit insurance

• Debt Relief Vacation

You might not realize it, but – if you’ve taken out credit – chances are you have credit insurance linked to the loan.

Credit insurance (also known as a “credit life insurance policy”) is a policy that pays off your debt if you die or become disabled or, sometimes, if you are made redundant.

Every credit insurance policy is different; check your terms and conditions.

Most credit providers in South Africa have now launched various Covid-19 ‘debt relief holidays’ whereby repayment terms are extended and / or repayments are suspended for a period.

Bruce Whitfield of The Money Show Asked personal finance journalist Maya Fischer-French on the pros and cons of tapping into credit insurance versus opting for debt relief leave.

Whitfield also spoke to FNB Life CEO Lee Bromfield.

If you take the payment holiday… it adds the principal that you have to repay. It’s not a freebie… Credit life insurance… it’s been abused before… people don’t even know they have it… Check if you have credit insurance… you probably have it!

Maya Fischer-French, personal finance journalist

Only the African Bank sent a press release saying that credit life insurance is available…

Maya Fischer-French, personal finance journalist

Credit life has been around for some time. It’s built into our processes… we try to contact all of our customers… how they can make a complaint… We prefer that our customers don’t go into more debt…

Lee Bromfield, CEO – Life FNB

For more details, listen to the interviews in the audio below.

More from MyMoney Online

More personal finance with Warren Ingram

South Africans’ extremely high debt distress rate is well documented. The gravity of the situation is reflected in the headline of an article in The Economist last year: “In South Africa, More People Have Loans Than Jobs”.

Given that over 40% of active consumers in the country are in arrears of credit and that we have a total debt load of 1.7 trillion rand, our economy and our society are at risk. Obviously, intervention to relieve this crisis is needed. This is recognized by the government, which has commissioned extensive research on the issue. In addition, Parliament recently passed legislation to provide intervention: the National Credit Amendment Act. The president signed the law in August.

While recognizing that the dire situation facing South African consumers is important in the way of alleviating this crisis in our country, this legislation, in its current form, is not what is needed. In fact, many of the industry’s comments aren’t either. For example, it has been suggested that the debt relief proposals could put the banking sector at great risk, as R13-20 billion in debt could be canceled through the provisions of the law. This creates an environment of alarmism and panic which, in our opinion, is not valid.

Industry players making comments like this are reckless, especially as a closer look at the legislation makes it clear that a significant amount of debt is unlikely to actually be written off.

First, the law only provides debt relief for certain debtors: those with household income less than R7,500 per month, who have unsecured debt of less than R50,000, and whose income in relation to the amount owed reflects a situation of over-indebtedness. Since all of these factors must apply for a request for debt intervention to be considered, only a small portion of debtors will be eligible for debt intervention.

The onus is then on the debtor to seek intervention on the debt, assuming he has the knowledge, understanding and resources to do so.

There are enormous communication needs regarding the explanation of the concept, process, rights and obligations to the most vulnerable people in our society, and we have great concerns as to how this could be achieved.

Second, we question the practicality of several of the provisions of the act. It is not clear, for example, how the authorities will be able to carry out an over-indebtedness assessment, as required, for each individual debtor requesting relief. The sheer volumes make it highly unlikely that most people seeking help will be treated.

Another problem that makes the provisions of the law inapplicable is that only one body will have the power to deal with these requests: the National Credit Regulator (NCR).

It is not an organization with a large national footprint – in fact, it only has one office, located in Midrand near Johannesburg. So how could a minor from the Northwest, a rural single mother from the Eastern Cape surviving on welfare, or a farm worker from the Karoo access the services of the NCR?

The most vulnerable debtors in our society are the least likely to have access to tools such as computers and smartphones with Wi-Fi availability, so the RCN would likely need thousands of field workers with physical presence throughout the country. How this will be implemented in practice is unclear.

The law also provides for a complicated two-year financial review process before a debt can be written off. Again, the practical implications suggest that few consumers will reach the end of this process and have their debts written off, even among the small portion of consumers who manage to qualify and successfully apply for debt intervention first. place.

It is estimated that 407 million Rand of taxpayer money would be needed to make the provisions of the law enforceable. This would include funds to communicate important process messages, to pay infantry who should be employed, and to finalize debt write-offs through the National Consumer Court, among other costs.

Considering that it is unlikely that more than R100 million will be written off, the cost / benefit ratio for the year becomes questionable.

It may be much easier to simply write off the debt of those who clearly have no chance of repaying – those who earn less than R7,500 per month, for example.

This way, no industry will find itself at risk and we will not use large sums of taxpayer revenues to fund a process that appears to have many obstacles to success.

Mareesa Kreuser is Legal Counsel and Head of Audit at Summit Financial Partners.

PERSONAL FINANCES

On April 7, 2020, a new bill was introduced by Congresswoman Katie Porter (D-CA), a member of the House Financial Services Committee and a former law professor and consumer advocate in the House of Representatives. The bill, if passed, would amend the Fair Debt Collection Practices Act and the Fair Credit Reporting Act, specifically regulating how medical debts are handled under those laws.

The bill has 68 co-sponsors in the House of Representatives (67 Democrats and 1 Republican). The current title of the bill is: “Amend the Fair Credit Reporting Act to institute a one-year waiting period before medical debt is reported on a consumer’s credit report and to remove medical debts paid and settled credit reports that have been fully paid or settled, to amend the Fair Debt Collection Practices Act to provide a timeline for medical debt verification and to increase the efficiency of credit markets. credit with more perfect information, and for other purposes.¹

The details of the bill and the text have not yet been released. However, the name provides abundant context as to what lawmakers hope to accomplish. The bill has been referred to the House Committee on Financial Services for consideration, according to Congress.gov.²

According to Congressman Porter press release, the bill has garnered support from the National Association of Consumer Advocates, the Consumer Federation of America, the Americans for Financial Reform and the National Patient Advocate Foundation.³ MP Porter went on to say, “No one chooses to get sick and take on medical debt. It is not good that families are struggling with years and years of additional financial hardship because of an illness or injury they could not foresee.

Senator Jeff Merkley (OR) reintroduced a companion bill in the Senate, joining Porter. The associated bill, entitled “Medical Debt Relief Act”, is co-sponsored by Senators Richard Blumenthal (D-CT), Elizabeth Warren (D-MA), Bob Menendez (D-NJ) and Dick Durbin (D-IL) . “Imagine recovering from an intense medical event and paying all of your medical bills, only to be haunted by this debt for years to come,” Senator Merkley said in her press release.⁴ “Tens of millions of Americans have lived through this reality – a nightmare that will only get worse as we battle the coronavirus pandemic. No patient or family should lose their credit opportunities because they got sick, so especially now, Congress should pass the Medical Debt Relief Act. “⁵ The full text of the Medical Debt Relief Act can be found here.

KINSHASA (Reuters) – China has granted some debt relief to the Democratic Republic of the Congo to help it weather the economic fallout from the coronavirus pandemic, the Congolese foreign ministry said on Wednesday.

As a result, the Congo will not have to repay its interest-free loans from China which matured at the end of 2020. The ministry did not specify how much this amounted to.

China has provided more than $ 2 billion in debt relief to developing countries as part of the G20 aimed at giving those hit by the COVID-19 crisis a financial respite.

The latest deal was announced at a joint press conference in Kinshasa with Chinese Foreign Minister Wang Yi.

“As the Congo’s most trusted friend, China wishes to continue to make its contribution to the development of the Congo,” Wang said in the Congolese ministry’s statement.

According to data collected by the Johns Hopkins China Africa Research Initiative, Chinese entities granted 53 loans to the Democratic Republic of the Congo between 2000 and 2018, for a total amount of $ 2.4 billion. Most of the loans have been concentrated in the electricity, transport and mining sectors.

The major producer of cobalt and copper has attracted billions of dollars in investment from Chinese miners in recent years.

Congo’s exports to China jumped 30% in 2020 from the previous year.

(Reporting by Stanis Bujakera, additional reporting by Karin Strohecker in London; Writing by Alessandra Prentice; Editing by Bate Felix and Bernadette Baum)

GREENSBORO, HIGH POINT, WINSTON-SALEM, NC – Today Congress unveiled a $ 900 billion relief bill to provide short-term economic relief to the country from the coronavirus pandemic. The plan includes several elements that will benefit restaurants, bars and hotels, including a second access to the Paycheck Protection Program (PPP), with unique provisions to help the hospitality industry, which continues to suffer losses. unprecedented jobs and income.

“This bill will help the North Carolina hospitality industry with much-needed capital that will give us more time to work with Congress to design additional programs to save our beloved community restaurants, bars and hotels,” said said Lynn Minges, President and CEO of NCRLA: “Since the early days of the pandemic, when restaurants and bars in North Carolina were closed and travel was restricted, the North Carolina Restaurant & Lodging Association worked with the National Restaurant Association, the American Hotel & Lodging Association and other partners to lobby Congress. and the Trump administration for long and short term economic support.

The plan announced today targets relief for restaurants, bars and hotels with provisions including:

Enhanced PPP Loan Amount: The PPP offers a company a forgivable loan based on 2.5 times its monthly salary costs. Restaurants and hotels, however, can apply for repayable loans based on 3.5 times monthly salary costs.

Improved access to PPP: Companies that employ a total of 300 or more employees across all sites (combined) are deemed ineligible for PPP. Today’s bipartite plan reflects the reality that many mid-to-large size foodservice, hospitality and hospitality groups are on the verge of bankruptcy and allows them to qualify for the PPP as long as they employ no more than 300 employees at each physical site.

One year extension for the relief of the restructuring of troubled debts (TDR) (article 4013 of the CARES law). This will allow banks to continue working with borrowers to achieve additional forbearance and debt relief until the end of 2021.

Other provisions of the bill that will benefit restaurants, bars and hotels include deductibility of business expenses paid with PPP loans, improved Employee Retention Tax Credit (ERTC), extension of work opportunities tax credit (WOTC) and tax increases. deduction for business meals.

“The past nine months have been the toughest in hospitality industry history,” Minges said. “We are proud of the many partners and friends who have come together across our state to push for this stimulus package. We recognize that today’s bipartisan stimulus package has been an uphill battle in Congress, and we thank the members of our NC Congress delegation for their unwavering support to our industry. We see this as a “down payment” on the relief we will ultimately need to make North Carolina’s restaurants and hotels whole, and we look forward to working together in the New Year to meet those needs.

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About the NCRLA

Founded in 1947, the North Carolina Restaurant and Lodging Association serves to promote and protect the interests of more than 20,000 businesses that employ 11% of the state’s workforce and generate more than $ 27.3 billion. sales per year. The association provides access to the resources and support restaurant and accommodation professionals need to run successful businesses, while being conscientious and contributing members of an unprecedented industry. To learn more about the NCRLA or its membership opportunities and economic benefits, please visit www.ncrla.org.