Do you have federal student loans? The government is offering payment relief until December 31 for those who qualify.
SAN ANTONIO – If you have lost your source of income or have had reduced income due to the ongoing coronavirus pandemic, it can be nearly impossible to pay off your federal student loans.
The CARES Act gives federal student loan borrowers some relief when it comes to making payments, and most recently President Donald Trump extended the program’s end date from September 30 to December 31.
So what does this mean for you, the borrower?
The Federal Trade Commission says that if you have eligible federal student loans, you are not required to make a payment by December 31. The US Department of Education has automatically placed these loans in what is called “administrative forbearance.”
If you have automatic payment, check to see if any payments have been processed since March 13, 2020. You may be able to get a refund if those payments have been made.
The interest rate on these qualifying loans also dropped to 0% through December 31, which means you can still make payments and pay off your debt even faster if you have the cash on hand.
If your loans are in arrears, the US Department of Education has also stopped making collection calls and sending billing statements until the end of the year.
The FTC says you don’t have to do anything to enroll in this relief program, but you need to make sure your federal student loans are included.
Contact your federal loan officer or visit Studentaid.gov to find out if your loans are included.
For more advice from the FTC, Click here.
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