Federal Loan Suspension and Interests Waived During Pandemic
May 20, 2020
Effective March 13, 2020, the Office of Federal Student Aid has announced a suspension on student loan payments and will also waive any federal loan interests during the national pandemic. The U.S. Secretary of Education has “directed all federal student loan service providers to grant an administrative forbearance to any borrower with a federally held loan who requests one”. This forbearance is effective for at least 60 days with 0% interest rate automatically set up. To request this forbearance, borrowers should contact their service loan providers respectively.
In addition, an automatic suspension of payments will also be authorized to any borrower who becomes more than 31 days delinquent, which essentially offers a safeguard for people during this national emergency. Furthermore, to provide more flexibility during this crisis, federal student loan borrowers will also have the option to suspend their payments for at least two months. This permits them to temporarily pause their payments without concern about accumulating interests. Any borrower who is affected during this pandemic and is experiencing an income change or financial crisis can also contact their loan servicers to request lowering their monthly payment. To ensure all student borrowers, including borrowers in income-driven repayment plans receive proper support during this emergency, the Department will be working closely with Congress to address these concerns and elevate anxiety for people during this crisis.
For more upcoming details on Federal Student Aid during COVID-19, please visit StudentAid.gov/coronavirus.
For additional support, please don’t hesitate to contact our Financial Aid Office at firstname.lastname@example.org or by calling us at 617-217-9858 to chat with one of our Financial Aid Counselors.