The CARES Act offers great news for those with federally held student loans: All federally held federal student loans are temporarily suspended and interest will not accrue through September 30, 2020. The suspension is retroactive to March 13, 2020.
"The payment pause and interest waiver is essentially freezing your loans in time," said Mark Kantrowitz of SavingforCollege.com. "The loan balance that you have now will be the loan balance that you have on September 30th. It will not change."
Knowing which loans qualify can be a little tricky.
- All direct loans taken out since 2010, including direct Parent PLUS loans.
- Most Federal Family Education Loans taken out since 2010.
- If your lender is showing as Department of Education, it is eligible.
Which loans do NOT qualify?
- Private student and parent loans.
- Most Perkins loans held by a college or university, do not qualify unless they were purchased by the Department of Education.
- If your loan is showing as AES or Chase Bank or Sallie Mae, then it is not a federally held federal loan, and not eligible.
If you're not sure what kind of loan you have, you can ask your loan servicer if your loan is eligible for the payment pause and interest waiver under the CARES Act.
For complete details and specific information, visit the U.S. Department of Education, Federal Student Aid website. Coronavirus and Forbearance Info for Students, Borrowers, and Parents
"The payment pause and interest waiver is essentially freezing your loans in time," said Mark Kantrowitz of SavingforCollege.com. "The loan balance that you have now will be the loan balance that you have on September 30th. It will not change."
Knowing which loans qualify can be a little tricky.
- All direct loans taken out since 2010, including direct Parent PLUS loans.
- Most Federal Family Education Loans taken out since 2010.
- If your lender is showing as Department of Education, it is eligible.
Which loans do NOT qualify?
- Private student and parent loans.
- Most Perkins loans held by a college or university, do not qualify unless they were purchased by the Department of Education.
- If your loan is showing as AES or Chase Bank or Sallie Mae, then it is not a federally held federal loan, and not eligible.
If you're not sure what kind of loan you have, you can ask your loan servicer if your loan is eligible for the payment pause and interest waiver under the CARES Act.
For complete details and specific information, visit the U.S. Department of Education, Federal Student Aid website. Coronavirus and Forbearance Info for Students, Borrowers, and Parents
Comments
Post a Comment