If you lost your source of income or had reduced income because of the ongoing coronavirus pandemic, making payments on your federal student loans may be nearly impossible. With the extension of The CARES Act, those borrowers have relief from paying through December 31st.
The Federal Trade Commission (FTC) says if you have qualifying student loans, you are not obligated to make a payment until after Dec. 31. The U.S. Department of Education has automatically placed those loans into what’s called “administrative forbearance.”
If you have auto-pay, check to see if any payments have been processed since March 13, 2020. You may be able to get a refund if those payments went through.
The interest rate on those qualifying loans has also dropped to 0% until Dec. 31, meaning you can still make payments and pay off your debt even faster if you have the money available.
If your loans are in default, the U.S. Department of Education has stopped making collections calls and sending billing statements until the end of the year as well.
The FTC says you don’t need to do anything to enroll in this relief program, but you must make sure your federal student loans are included.
Contact your federal loan servicer or visit studentaid.gov to find out if your loans are included.
Want to know more?
- 5 Things to Know About Current Repayment Flexibilities and your Federal Student Loans
- Which Student Loans Are Eligible?