Broker Check
Student Loans under the COVID-19 CARES Act

Student Loans under the COVID-19 CARES Act

May 28, 2020

ATTENTION FEDERAL STUDENT LOAN BORROWERS: The CARES Act (which is the economic assistance bill passed as a result of the COVID-19 pandemic) has enacted an administrative forbearance period from March 13, 2020 through September 30, 2020 where interest on loans have been reduced to ZERO and you do not need to make any payments. Some things to consider:

You can continue making payments throughout the forbearance period, IF YOU WANT. For example, if you are in a solid financial position and are on a standard payment plan or the like, it may actually be beneficial for you to make payments while the interest is zero so you can pay down more of the principal.

If you are on an income-driven repayment plan or participating in the Public Service Loan Forgiveness Program (#pslf), take advantage of this forbearance period! THE SUSPENDED PAYMENTS WILL STILL COUNT AS QUALIFIED PAYMENTS TOWARDS LOAN FORGIVENESS.
Furthermore, if a payment was processed any time on or after March 13, 2020, you can contact your loan servicer and have it refunded. You will get your full payment back and it will still count as a qualified payment toward your forgiveness! #studentloanstimuluscheck

I found this site helpful for more FAQs ( Let me know if you have any other questions.