Helpful Information on Student Loan Relief during COVID-19
Posted: 4/4/2020 (Funding)
Recent legislation, such as the Families First Coronavirus Response Act and the Coronavirus, Aid, Relief, and Economic Security (CARES) Act, has provided some financial and tax relief. Student loan payments are automatically deferred until Sep. 30, 2020. Anyone with almost any kind of federal student loans (with some exceptions) will have their payments automatically suspended for up to six months with no accrual of interest. These six months will, however, still count as progress towards forgiveness under Public Service Loan Forgiveness (PSLF) or any Income-Driven Repayment Plan, such as Pay As You Earn (PAYE), Revised Pay As You Earn (REPAYE) and Income-Based Repayment (IBR). This expands and extends the student loan interest accrual and payment freeze that has been in place since March 13, 2020. Please note that these benefits do not apply to private loans (i.e. loans that were refinanced with private financial institutions), FFEL loans held by private institutions, or loans made by the Department of Health.
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