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The CARES ACT and Student Loans

During this time, people are looking for ways to help alleviate financial burdens.  The CARES ACT that was passed on March 27, 2020, provides several ways of relief and one of those includes relief for those paying Student Loans. Federal Student Loan principal and interest payments are suspended until September 30, 2020.

What does this mean for you?

Most federal Student Loan Lending companies are suspending monthly payment requirements and setting the interest rate down to 0%.

Whether you are unable to pay your loans or if you can afford to pay off more of your loan- this is beneficial because either way it is a win.

Next Steps?

Contact your Student Loan lending company

Ask them what all the options are for your loan and if monthly payments are suspended and if the interest rate is 0%

Payments made on or after March 13, 2020?

If you have made student loan payments on or after March 13, 2020, you can request a refund for those payments.

To do so, you will need to contact your Student Loan Lending Company and go through a refund request process.  So this 6 month relief actually can turn into 7 months of relief due to the CARES ACT.

Additional facts you should know:

• If you have a private lender- you are not eligible
• If you have a Federal Family Education Loan (FFEL) you are not eligible. Loan consolidation might be an option, but you should contact your lending company for all your options.
• Department of Education states that auto payments will be suspended and nothing is required for you to stop these payments and they will automatically start back up again in October 2020.
• If you would like to keep auto payments on and take advantage of the 0% interest and allow yourself to pay off your loan faster, then you will want to contact your lending company to turn auto pay back on.

To read more on the benefits from the CARES ACT and how they apply to you, read our recent blogs found here.