The Coronavirus Aid, Relief, and Economic Security (CARES) Act provides payment relief to borrowers with qualifying student loans.
From March 13 through September 30, 2020, the U.S. Department of Education has placed most federal student loans into administrative forbearance. Borrowers may stop making payments during this time. This will happen automatically; there’s nothing borrowers need to do.
It’s important to note that the program only applies to federally held student loans. To find out if your loan is eligible, contact your loan servicer—the entity to which you make your payment—online or by phone. If you don’t know who your servicer is, visit StudentAid.gov/login or call 800-4-FED-AID for assistance.
As always, it’s important to review the options and make the best decision for your financial needs at this time.
If you’d like to keep making payments, the interest rate on these loans is set at 0% through September 30. Continuing to make payments could help you pay down your loan balance more quickly. However, auto-debit payments have been suspended, so contact your loan servicer to restart payments. You may also make a one-time payment at any time during the forbearance period.
If you made a payment after March 13, you may be able to receive a refund. Any payment made between March 13 and September 30 can be refunded. Contact your loan servicer to request a payment refund.
If your student loan is in default, the Department of Education has stopped making collection calls, and sending letters or billing statements through September 30, 2020.
If your loan doesn’t qualify, reach out to your loan servicer. There may be other options available if you need assistance.