COVID-19 Leads to Temporary Stop of Student Loan Payments
The Coronavirus Pandemic has far-reaching effects on our nation. Economic shutdowns and widespread job losses have made it difficult for many Americans to pay their student loans.
Fortunately, on March 27, 2020, President Donald J. Trump signed the CARES Act into law, which, among other things, provides broad relief for federal student loan borrowers.
During the COVID-19 national emergency, federal student loan borrowers are automatically being placed in an administrative forbearance. This allows borrowers to temporarily stop making monthly loan payments through September 30, 2020. Borrowers who prefer to keep paying may do so.
During the forbearance period, the interest rate is 0% on the following types of federal student loans owned by the U.S. Department of Education:
- Defaulted and nondefaulted Direct Loans
- Defaulted and nondefaulted Federal Family Education Loan (FFEL) Program loans
- Federal Perkins Loans
Note that some FFEL Program loans are owned by commercial lenders, and some Perkins Loans are owned by the institution the student attended. These loans are not currently eligible for the forbearance benefit.
If student loan payments are being deducted from your social security, that will stop from March 13, 2020 through Sept. 30, 2020.
Manta Law Represents Consumers in Debt Collection Harassment and Garnishment Cases
Manta Law is Tampa boutique firm that represents individuals who are being harassed over the collection of private student loans and whose bank accounts or wages are being garnished. We serve residents of Wesley Chapel, New Port Richey, Temple Terrace, North Tampa, Westchase, Citrus Park, St. Petersburg, and Clearwater.