Federal Student Loan Payments Suspended
The Office of Federal Student Aid has introduced relief for tens of millions of Americans with federal student loan debt amid the coronavirus pandemic.
In a press release, the U.S. Department of Education said interest rates for federally held student loans will automatically be reduced to 0% for the next two months.
In addition, each of these borrowers will have the option to suspend their payments for at least two months to allow them greater flexibility during the national emergency. This will allow borrowers to temporarily stop their payments without worrying about accruing interest...
Secretary DeVos has directed all federal student loan servicers to grant an administrative forbearance to any borrower with a federally held loan who requests one. The forbearance will be in effect for a period of at least 60 days, beginning on March 13, 2020. To request this forbearance, borrowers should contact their loan servicer online or by phone. The Secretary has also authorized an automatic suspension of payments for any borrower more than 31 days delinquent as of March 13, 2020, or who becomes more than 31 days delinquent, essentially giving borrowers a safety net during the national emergency.
Education Secretary Betsy DeVos said these are anxious times for students, families, and educators alike.
“Right now, everyone should be focused on staying safe and healthy, not worrying about their student loan balance growing. I commend President Trump for his quick action on this issue, and I hope it provides meaningful help and peace of mind to those in need."
Borrowers can learn more at https://studentaid.gov/coronavirus.