COVID-19 and Student Loans: How to Get Relief
Amid the health concerns associated with the global pandemic, the coronavirus has brought with it business closures, stock market volatility, and unprecedented economic uncertainty. People are worried about their jobs, their savings, and—yes—their student loans.
On March 13, 2020, the White House announced temporary relief measures for federal student loan borrowers, and this announcement was followed by further guidance from the Department of Education. Much of the relief was codified into law with Congress’ passage of an economic stimulus bill on March 27, with further extensions implemented through executive action. Here is a quick recap of the student loan relief program:
- Federal student loan interest has been dropped to 0% until September 30, 2021.
- Borrowers are placed into an immediate forbearance (supension of payments) until September 30, 2021.
- Borrowers 31 days or more delinquent on their loans are granted an automatic forbearance.
- Automatic collection of defaulted federal loans has been paused.