Effective March 13, 2020, through Sept. 30, 2020, the US Department of Education recently approved relief options in the CARES Act , as a mean to provide relief to student loan borrowers during this COVID-19 period.
Here are some important points for borrowers, parents, and students to review:
For the period of March 13, 2020, through Sept. 30, 2020
0% INTEREST PERIOD
Interest rate is 0% on the following types of federal student loans owned by US Dept of ED.
Defaulted and non defaulted Direct Loans
Defaulted and non defaulted FFEL Program loans
Federal Perkins Loans
ADMINISTRATIVE FORBEARANCE/TEMPORARY SUSPENSION OF PAYMENT
Your payments will automatically stop/be suspended from March 13, 2020 through Sept. 30, 2020.
Non Defaulted Direct Loans/FFEL
Students may still make payment, but must opt in w/servicer to resume payments
PSLF and IDR payments will be counted during this period
Contact your servicer with any questions or changes in employment or income.
DEFAULTED STUDENT LOANS
0% Interest period is applied
Immediate stop to garnishment on wages, social security benefits, and federal taxes.
Third Party Agencies will cease attempts to collect from defaulted borrowers
Students are still able to resolve defaulted loans at this time
Payment in Full
This period has an anticipated date to end September 30, 2020; notification of repayment will begin August 1, 2020 by your assigned federal loan servicer. Some exclusion may apply and may not include all FFEL and/or Perkin loans. TIP: Stay updated by reviewing each loan, contacting your servicer(s), updating your profile contact information, and registering online at your servicerʻs website.
Any questions you may have will be best answered by your assinged agency.
If you have any further questions, you may email our office at email@example.com and we will be glad to assist.
Here are some helpful website resources we have available for you:
Stay informed with updates at the US Dept. of Education, Federal Student Aid Coronavirus (COVID-19) information page for borrowers.
Questions? Email our office at firstname.lastname@example.org
Federal Loan Servicing Centers
We highly recommend student loan borrowers to register online with your federal student loan servicer. Once registered, you are able to receive updated information about your student loans and repayment options.