Student Debtors Can Focus on Health During Coronavirus Outbreak
Student Loan Payments Suspended
On March 20, 2020, the US Department of Education Secretary Betsy DeVos has directed federal lenders to allow borrowers to suspend their student loan payments without penalty for at least the next 60-days due to the coronavirus outbreak in the USA.
All borrowers with federally held student loans will automatically have their interest rates set to 0%.
Additionally, each of these borrowers will have the option to suspend their payments for at least two months to allow them greater flexibility during the national emergency.
This will allow borrowers to temporarily stop their payments without worrying about accruing interest.
All federal student loan servicers are directed to grant an administrative forbearance to any borrower with a federally held loan who requests one.
The forbearance will be in effect for a period of at least 60 days, beginning on March 13, 2020.
To request this forbearance, borrowers should contact their loan servicer online or by phone.
The Secretary has also authorized an automatic suspension of payments for any borrower more than 31 days delinquent as of March 13, 2020, or who becomes more than 31 days delinquent, essentially giving borrowers a safety net during the national emergency.
Some borrowers may want to continue making payments, like those seeking Public Service Loan Forgiveness (PSLF) or those enrolled in a repayment plan with a manageable monthly payment.
For borrowers continuing to make payments, the full amount of their payment will be applied to the principal amount of their loan once all interest accrued, prior to the president's March 13 announcement, is paid.
Finally, any borrower who has experienced a change in income can contact their loan servicer to discuss lowering their monthly payment.
"These are anxious times, particularly for students and families whose educations, careers, and lives have been disrupted," said Secretary DeVos. "Right now, everyone should be focused on staying safe and healthy, not worrying about their student loan balance growing. I hope it provides meaningful help and peace of mind to those in need."
For details please visit Student Aid/Coronavirus.
Coronavirus national emergency news published by Precision Vaccinations.