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Good News for Student Loan Borrowers!

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Shannon Vasconcelos

Written by Shannon Vasconceloson December 7th, 2020

Shannon Vasconcelos has worked in student financial assistance at Boston University and Tufts University School of Dental Medicine, where she served as the assistant director of financial aid. At Tufts, she was responsible for reviewing financial aid applications, determining financial aid awards, and helping families through the college financing process. In addition, Shannon has served as an active member of the Massachusetts Association of Student Financial Aid Administrator’s Early Awareness and Outreach Committee, as a trainer for the Department of Education’s National Training for Counselors and Mentors, and as a volunteer for FAFSA Day Massachusetts. She has a BA in economics from the University of Massachusetts and an MA in urban and environmental policy and planning from Tufts University.

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Important news for student loan borrowers coming out of the Department of Education this weekend! Secretary of Education Betsy Devos announced the extension of the automatic loan forbearance for federal student loan borrowers through January 31, 2021.  This forbearance was originally granted by the CARES Act and was scheduled to end September 30, 2020. President Trump later extended the forbearance by executive action through December 31, 2020, and Devos’ latest action ensures that struggling borrowers will not need to make payments prior to the new administration taking office in late January. Key points for borrowers include:
  • No payments on federal student loans will be required prior to January 31.
  • No interest will accrue on these loans during this time.
  • No collections activity will be undertaken.
  • Non-payments will count as if payments were made for the purposes of Public Service Loan Forgiveness, income-driven repayment plans, and loan rehabilitation agreements.
Refer to our post, COVID-19 and Student Loans: How to Get Relief, for details and frequently asked questions about the federal student loan administrative forbearance, including why borrowers who can afford to do so may want to continue making monthly loan payments. And stay tuned to the Bright Horizons College Coach Insider Blog for any student loan policy changes to come as they are announced by the Biden administration.
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