Federal Student Loan Payments Suspended Through Sept. 30
Americans will get federal student loan debt relief as part of the $2 trillion coronavirus stimulus package signed by President Trump on Friday. The bill contains a provision that delays payments for federally held student loans through Sept. 30. Those who don’t pay will face no penalties or interest. Nonpayment cannot be used to affect loan forgiveness or alter credit scores.
“The bill also suspends any wage garnishment or tax refund reduction for people who have defaulted on their federal student loans,” according to Buzzfeed.
Not everyone is eligible. Private loans, which make up about 12% of college borrowing, are not bound by the bill. Those with Perkins and commercially held Federal Family Education Loans also do not qualify.