That's because federal student loans come with several borrower protections, such as flexible repayment options and coronavirus relief benefits. Last updated December 14, 2020. NPR’s sites use cookies, similar tracking and storage technologies, and information about the device you use to access our sites (together, “cookies”) to enhance your viewing, listening and user experience, personalize content, personalize messages from NPR’s sponsors, provide social media features, and analyze NPR’s traffic. What Should I Do If I Can't Reach My Loan Servicer? Borrowers have saved about $7 billion a month in student loans since the pandemic started, the Federal Reserve Bank of New York and Bank of America … Student loan forgiveness during coronavirus: Everything you need to know By Rebecca Lake Sponsored by Credible - which is majority owned by our parent, Fox Corporation, and is … The Department continues to update ed.gov/coronavirus with information on COVID-19 for students, parents, educators, and local leaders. The coronavirus outbreak has changed the entire landscape of student loan repayment and refinance. By extending payments by one month, the administration is effectively leaving it to the Biden administration or Congress to decide whether to provide longer-term relief to millions of student borrowers. DeVos has extended the moratorium on student loan payments and the accrual of interest until Jan. 31, 2021. Borrowers have saved about $7 billion a month in student loans since the pandemic started, the Federal Reserve Bank of New York and Bank of America said in November. A spate of executive actions from the Trump administration and the sweeping stimulus package will deliver relief to student loan borrowers contending with the economic fallout of the coronavirus. ... or eliminate several federal student loan repayment options ... or furloughed because of Covid-19; FILE - In this Oct. 15, 2020, file photo Secretary of Education Betsy DeVos speaks at the Phoenix International Academy in Phoenix. The Department continues to update ed.gov/coronavirus with information on COVID-19 for students, parents, educators, and local leaders. “The added time also allows Congress to do its job and determine what measures it believes are necessary and appropriate,” DeVos said in a statement. President-elect Joe Biden has not directly addressed the moratorium but on Tuesday called for immediate relief including “relief from rent and student loans.” He has also supported proposals to erase up to $10,000 in student debt for all borrowers as part of a future virus relief package. On Aug. 21, Secretary DeVos fulfilled President Trump's Aug. 8 Memorandum on emergency federals student loan relief by extending the CARES Act borrower benefits until December 31, 2020. In August, President Donald Trump directed DeVos to extend the forbearance through the end of 2020. Federal student loans were placed on forbearance in March. With the end of 2020 fast approaching, U.S. Secretary of Education Betsy DeVos has extended coronavirus emergency relief benefits for borrowers with federal student loans through Jan. 31, 2021. Coronavirus Resources. The Coronavirus Aid, Relief, and Economic Security (CARES) Act, signed into law March 27 and worth roughly $2 trillion overall, allowed borrowers to suspend payments on federal student loans … Government Response to Coronavirus, COVID-19 . Congress later cemented the measure in legislation and Trump extended it through December, but the looming deadline stoked fears that millions of borrowers would be forced to resume payments even as unemployment rates soared. With the passing of the second stimulus bill, the Emergency Coronavirus Relief Act, federal student loan borrowers will continue to have their payments automatically paused until April 2020 — among other benefits. DeVos’ Friday release says that any defaulted borrowers who continue to have wages withheld will receive refunds. Education Department Extends Federal Student Loan Payment Freeze : Coronavirus Updates Congress hit pause on federal student loan payments … Federal student loans. You can also visit Federal Student Aid’s Coronavirus (COVID-19) information page at StudentAid.gov/coronavirus. On March 27, 2020, the federal government passed the CARES Act, which provides relief for most federal student loan borrowers, effective March 7, 2020, and lasting through at least September 30, 2020. In the interim, the Coronavirus Aid, Relief, and Economic Security Act provided this same student loan payment relief, but that program is scheduled to expire on September 30, 2020. Lenders will have to immediately stop requiring payments and accruing interest on federally held student loans after President Trump signed the new coronavirus aid bill into law. Federal student loan forbearance not extended in COVID-19 stimulus bill According to the Federal Reserve, Americans face $1.7 trillion in student debt. Borrowers currently on an IDR plan will have suspended payments count toward IDR forgiveness. COVID-19 Student Loan Relief. Coronavirus.gov. What is happening with student loan repayment during the coronavirus outbreak? See a list of federal student loan servicers. On This Page: Federal Student Loans Private Student Loans How Do I Know If My Loans Are Federal or Private? The page includes information about relief to student loan borrowers, including those who have defaulted on their federal student loans. The original coronavirus relief bill, known as the CARES Act and signed into law on March 27, 2020, helped most federal student loan borrowers by temporarily pausing payments and involuntary … We are updating our websites and systems as quickly as possible to explain the types of relief now available for federal student loans held by the Department of Education. Skip to Main Content Skip to Login Skip to Login. A federal lawsuit filed against DeVos in April alleged that thousands of overdue borrowers were still getting pay withheld despite the mortarium. Federal student loan flexibilities for the COVID-19 emergency have been extended through Jan. 31, 2021. For example, "Taking a federal student loan and refinancing into a private student loan isn't always advisable," Tayne says. Last month, the American Council on Education and dozens of other higher education associations urged DeVos to extend the relief, saying the recent surge in COVID-19 cases would likely lead to even more economic turmoil. The CARES Act, the sweeping stimulus legislation enacted in March, includes relief for student loan borrowers. Federal Student Loans. Even DeVos’ own agency warned of looming trouble if the moratorium lapsed. There are … During this coronavirus pandemic it is important that states, communities, educators, and families are equipped with resources and flexibilities that empower students to continue pursuing their education goals . People with student loans got some good news Friday. If you click “Agree and Continue” below, you acknowledge that your cookie choices in those tools will be respected and that you otherwise agree to the use of cookies on NPR’s sites. Student loans can be a burden, and the current coronavirus pandemic is not making it any easier. Make payments, view loan details and access helpful information about student loans and repayment options. During the coronavirus, federal student loans won't rack up interest. WASHINGTON — Americans will get a six-month reprieve from federal student loan payments as the coronavirus pandemic leads to job losses and economic turmoil nationwide.. As part of the coronavirus relief bill passed through Congress and signed by President Donald Trump on Friday, lenders must stop all payments for federally held student loans through Sept. 30. The department blamed the error on its servicers. With the passing of the second stimulus bill, the Emergency Coronavirus Relief Act, federal student loan borrowers will continue to have their payments automatically paused until April 2020 — among other benefits. The Department of Education suspended loan payments, collections and interest charges on most federal student loans through the end of 2020. The Coronavirus Aid, Relief and Economic Security Act provided two weeks of paid sick days to workers at companies with fewer than 500 employees … In the span of two weeks, the government’s coronavirus assistance for student loans escalated quickly: first, it was waiving interest on some student loans, then suspending payments for two months, and then, most recently, stopping payments for six months. In Friday’s announcement, DeVos said her agency is working to notify the loan servicing companies that the Education Department contracts with to manage collections. The student loan payment and interest suspensions only apply to federal student loans held by the Department of Education. “The Congress, not the Executive Branch, is in charge of student loan policy.”. Since the federal CARES Act went into effect, more than 40 million federal student loan borrowers have had their payments paused and interest rates set to 0%. In announcing the extension, Education Secretary Betsy DeVos rebuked Congress for failing to act. Important COVID-19 Federal Student Loan Information. Last Updated 12/11/2020. On Aug. 21, Secretary DeVos fulfilled President Trump's Aug. 8 Memorandum on emergency federals student loan relief by extending the CARES Act borrower benefits until December 31, 2020. You can adjust your cookie choices in those tools at any time. The Trump administration on Friday suspended all federal student loan payments through the end of January and kept interest rates at 0%, extending a moratorium that started early in the pandemic but was set to expire at the end of this month. Coronavirus and Federal Student Loan Refinance As COVID-19 spreads, here is some advice on what to do while the interest rate on federal student loans is temporarily zero. Paused repayments You probably have questions about how the freeze applies, or doesn't, to you. That's because federal student loans come with several borrower protections, such as flexible repayment options and coronavirus relief benefits. Will there be any more legislation that might affect my current loans? Important COVID-19 Federal Student Loan Information. ET “Bringing millions of Americans back into repayment in the thick of this crisis will cause additional financial hardship and force borrowers to make difficult decisions about their limited resources,” the groups wrote in a letter to DeVos. Under the measure, students will not be required to make payments, their loans will not accrue interest and all collection activity will halt until the end of January. DeVos won praise for using her authority to pause federal student loan payments in March. Borrowers with existing federal student loans can reduce their interest rates by refinancing their student loans now. These relief measures are available to student loan borrowers with federal student loans owned by ED. Great Lakes Educational Loan Services, along with the U.S. Department of Education (ED) office of Federal Student Aid (FSA), is monitoring relief measures for federal student loans pertaining to the COVID-19 pandemic national emergency. Student loan forbearance ends on January 31, 2021. With the coronavirus pandemic spreading throughout the United States and crippling the economy, Congress moved quickly to approve a $2 trillion relief bill, which President Donald Trump soon signed.. The page includes information about relief to federal student loan borrowers, including those who have defaulted on their federal student loans. By COLLIN BINKLEY December 5, 2020 GMT. With unemployment at record highs, Americans are struggling to … For example, "Taking a federal student loan and refinancing into a private student loan isn't always advisable," Tayne says. Capitol Report Bipartisan coronavirus aid bill includes $300 a week for jobless and extensions on student loan, eviction help Published: Dec. 14, 2020 at 7:07 p.m. You may click on “Your Choices” below to learn about and use cookie management tools to limit use of cookies when you visit NPR’s sites. Included in the bill is relief for borrowers of certain types of student loans -- they'll see their interest frozen and payments suspended through at least Sept. 30. For instance, if you have federally held student loans, you do not currently need to make any repayment on them, as the government is offering automatic interest-free forbearance through Jan. 31, … Official Servicer of Federal Student Aid. The U.S. government has suspended all federal student loan payments and halted all interest charges, through the end of January 2021.At the same time, all collections and garnishments on federal student loans in default have stopped as well. Is the government doing anything to help with my student loans during the coronavirus outbreak? If … Federal student loan borrowers were already in an automatic interest-free pause on payments as part of the original coronavirus relief bill, known as the CARES Act. Start Refinancing My Student Loans. Trump battles to soften the economic impact of the COVID-19 pandemic with a 60-day suspension on federally held student loans. Advertiser Disclosure Check your student loan account regularly, and pay attention to updates posted on your loan servicer’s website, as well as on the Federal Student Aid coronavirus information page. Please visit the page regularly for updates. Federal student loans in the US were automatically placed into a period of forbearance created by … What this means to you. Coronavirus; Federal Student Loan Payments Will Be Suspended Through Sept. 30 Due To The Coronavirus. Resources and Updates from CDC. Here's how the latest GOP coronavirus relief proposal would impact student loans. Updated 8:41 AM ET, Sat March 14, 2020 (CNN) President Donald Trump announced new measures on Friday aimed at easing the burden of student loans … The COVID-19 health and economic emergency has caused temporary financial hardship for many Americans, making it difficult for many federal student loan … While that is … President Trump said the government would give almost all federal student-loan borrowers the option to suspend payments for at least two months. The measure was included in a March relief package and the White House extended it in August, but its fate was in doubt amid stalemate over a new relief bill. Previously, Trump announced that you have an option to stop paying your federal student loans for 60 days and can get student loan forbearance by contacting your student loan … Federal student loan flexibilities for the COVID-19 emergency have been extended through Jan. 31, 2021. During the coronavirus, federal student loans won't rack up interest. Resources for Washington Residents Federal Student Loans On March 27, 2020, the federal government passed the CARES Act, which provides The page includes information for students, borrowers, and parents about the 0% interest rate and administrative forbearance. "The coronavirus … Nelnet, along with the U.S. Department of Education (ED) office of Federal Student Aid, is monitoring relief measures for federal student loans pertaining to the COVID-19 pandemic national emergency. The Trump administration on Friday suspended all federal student loan payments through the end of January and kept interest rates at 0%, extending a moratorium that started early in the pandemic but was set to expire at the end of this month. The Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act, is a $2.2 trillion economic stimulus bill passed by the 116th U.S. Congress and signed into law by President Donald Trump on March 27, 2020, in response to the economic fallout of the COVID-19 pandemic in the United States. See details. Borrowers do not have to … Federal student loans. You May Like. (AP Photo/Matt York, File), Connect with the definitive source for global and local news. The Coronavirus Aid, Relief, and Economic Security Act (the CARES Act)—which will provide checks of up to $1,200 to many Americans, increased unemployment benefits, and forgivable loans … The Department of Education suspended loan payments, collections and interest charges on most federal student loans through the end of 2020. This situation may change in the near future, but for now, … Coronavirus stimulus: Student loans arise as potential flashpoint of negotiations  The White House and Senate Republicans released their new version of a stimulus … Federal Student Aid's coronavirus/COVID-19 web page is located at StudentAid.gov/coronavirus. Federal Student Aid’s coronavirus (COVID-19) information page is located at StudentAid.gov/coronavirus. This information is shared with social media, sponsorship, analytics, and other vendors or service providers. Student loans can be a burden, and the current coronavirus pandemic is not making it any easier. Options and resources for student loan borrowers who are impacted by coronavirus. This means that all borrowers with ED-owned student loans will continue to have their payments suspended until January 31, 2021 without penalty. As of September 11, no coronavirus relief bill has passed a vote in the Senate, since the initial round of legislative measures passed during the first months of the pandemic. In its annual report last month, Federal Student Aid, the office that oversees student loans, said that without an extension it would face a “heavy burden” in moving millions of borrowers to active repayment at the same time. If you’ve been adversely affected by the coronavirus crisis, you can officially apply for the debt relief you need. On March 27, the Trump administration also signed a coronavirus stimulus package that delayed loan repayment on federal student loans until September of 2020. On March 20, 2020, my Administration took action to provide immediate relief to tens of millions of student loan borrowers during the pandemic caused by COVID-19 by both suspending loan … Coronavirus pandemic; Financial markets; Education; Student loans; DeVos suspends student federal loan payments through January. 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