4 Ways Nurses Can Save Money on Student Loan Debt Amid COVID-19

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While most Americans socialize at home, nurses and other healthcare workers are battling COVID-19. Many of them are also drowning in the student debt they incurred to get there.

As the coronavirus crisis continues, nurses are receiving frank recognition for their dedication and service. This inspired a movement to cancel student loan debt for nurses once and for all.

A 2017 financial report from the American Association of Colleges of Nursing found that the median range of nursing graduate debt was around $ 40,000 to $ 55,000. (The total of all student debt in the United States is $ 1.7 trillion).

4 Ways To Save On Student Loan Payments Now:

  1. Student loan abstention: There is a student loan forbearance in the current COVID-19 stimulus. It includes a 0% temporary interest period and an automatic six-month payment suspension.
  2. 0% interest on federal loans: The Senate passed a stimulus package announcing that federal student loans “will automatically have their interest rates set at 0% for a period of six months.” In addition, borrowers do not have to make any payments during this six month period. According to Studentaid.gov, all federal loan student debt payments “will automatically stop from March 13, 2020 until September 30, 2020. But borrowers are still allowed to make payments if they choose.” You can find more information about automatic abstention. on the Federal Student Aid website.
  3. Federal loan refinancing rates have fallen to zero: The coronavirus pandemic prompted the federal government to lower refinancing rates to zero for the first time in history. Student debtors with federal loans can apply to take out a new loan with better rates from a private lender.
  4. Debt consolidation and refinancing: Since we’re seeing some of the lowest interest rates in history, now is a great time to refinance your non-federal student loans. It’s time to consolidate that debt into one low monthly payment through refinancing and debt consolidation.
    • Refinancing means you’ll replace the original interest rate on your loan with a new interest rate based on today’s low rates, which will save you money.
    • Consolidation is the process of transferring all of your student loan debt into one loan with lower interest rates. This makes it easier for you to make payments and save money.

>> Find out if you qualify for a nursing student loan refinance.*

Updates on Cancellation of Student Loans for Healthcare Workers Amid COVID-19

Amid the coronavirus crisis, the financial forgiveness movement for nurses and other healthcare workers has gained momentum online, with medical workers demanding our government fix the system.

Here is what is happening now.

Members of Congress have plan to cancel student debt for all amid COVID-19 crisis

Women of Congress Ilhan Omar (D-MN) and Ayanna Pressley (D-MA) introduced the Student Debt Emergency Relief Act to provide student debt relief during the COVID-19 crisis to all Americans with student loans ( not just nurses or health care workers). Their proposal to President Nancy Pelosi and Minority Leader McCarthy calls for the following:

  • Give up $ 30,000 in student loan debt for borrowers
  • Make student debt cancellation tax free for borrower
  • The US Department of Education would pay all federal student loans during the COVID pandemic.
  • Protect student loan borrowers from involuntary tax refunds, tax credits, Social Security, and other payday garnishments.

“As you begin to negotiate a critical emergency financial recovery plan in response to the coronavirus pandemic (COVID-19) and its devastating impact on workers, families and the economy, we ask you to give the priority for robust student debt cancellation and immediate relief, “they said. request.

Dozens of members of Congress agree with the bill. “During this public health emergency, no one should have to choose between paying off their student loan, putting food on the table, or ensuring their and their family’s safety,” lawmakers wrote in a statement.

The bill also specifically dealt with a current Trump administration plan to waive interest payments on student loans for Americans. It says the plan is failing to meet the urgent relief needs needed by the millions of workers and families weathering the storm of the COVID-19 crisis.

“Proposals that would simply postpone payments, like forbearance or postponement, are also inadequate. These payment “pauses” are not much of a relief and are insufficient to meet the needs of student borrowers at this critical time. “

Senate Democrats Also Have A Plan To Write Off Some Student Loan Debt For All

On March 19, Senate Minority Leader Chuck Schumer, DN.Y., and Senator Elizabeth Warren, D-Mass., Proposed that the federal government write off $ 10,000 in student debt for each borrower to help Americans to manage their money during the crisis.

According to the emergency relief proposal, the plan:

  • Suspend student loan payments during the current coronavirus crisis; and
  • Give up $ 10,000 in student loan debt for each borrower.
  • Suspend wage garnishment, tax refunds and Social Security benefits to pay off student loans.
  • Suspend all interest capitalization on student loans.
  • Extend the president’s student loan interest relief plan to FFEL loans, which are not federal student loans issued by the federal government

The proposal is still awaiting congressional approval and would only apply to federal loans, not private. But that would allow the US Department of Education to make monthly student loan payments on behalf of borrowers and to write off a minimum of $ 10,000 in student loans for all borrowers.

Indiana professor started petition to cancel healthcare workers’ debt

A MoveOn.Org petition was started by Consuelo Lopez-Morillas, professor at Indiana University, Bloomington. Its goal: for lawmakers to write off student loan debt for nurses and other healthcare workers leading the fight against the COVID-19 pandemic.

The petition is addressed to Senator Mitch McConnell, Senator Chuck Schumer, Representative Nancy Pelosi, Representative Kevin McCarthy and all of their Chiefs of Staff. There is no comment yet as to whether they will support this.

Lopez-Morillas likens medical professionals to soldiers in World War II, saying: “Medical professionals carry crushing student debt, ranging from tens to hundreds of thousands of dollars. Now they’re like soldiers at war, saving lives while risking theirs and protecting the rest of us, and many have already died doing their duty. Without the debt burden, more people would work in lower paying specialties like family medicine, or in underserved rural and urban areas. Society would benefit both healthily and economically for many years to come, just as America benefited from the GI Bill. “

Eva Yaa Asantewaa from New York, commented, “Our nurses are on the front lines of the fight against the coronavirus. They deserve our respect and care, and they must be able to come back from this fight without financial worries.”

Lopez-Morillas is aiming for 600,000 signatures. As of April 20, she had over 500,000 in favor of the petition.

You can sign the petition here.

Nurses create petitions on Change.org asking for loan cancellation

Myesha Oyatokis, a nurse from Atlanta, has started a petition for President Donald J. Trump and the US Department of Health. She is also asking for the cancellation of student nursing debt.

In his Change.Org petition, Oyatokis wrote: “I really feel like we nurses are on the front line of defense against this virus, just like a soldier at war, we are risking our lives against the unknown. , for all we know about this. could be some kind of bioterrorism, after all this we deserve more incentives from our government because we are the ones at risk, also putting our loved ones at risk! “

As of April 21, the petition had 63,688 signatures. Oyatolis is working to bring together 75,000 people to send the request.

You can sign the Oyatokis petition here.

Another nurse, Liatrice Munnerlyn, from Ohio, is asking for the cancellation of the nurses’ student loan.

Her document states: “Nurses continued to accept travel assignments to epicenters of the outbreak and continued to report for work in epicenters of this viral outbreak such as New York, New Jersey, Washington and New Brunswick. Orleans. lives in danger and leaves behind a worried family who are ill for their return. “

Munnerlyn has 265 signatures in April with a goal of 500.

You can sign the petition here.

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