President Trump signed the CARES Act into law last month, which among other things, provides relief for federal student loans.
We’re stretching your dollar with everything you need to know about your student loans amid the coronavirus pandemic.
To provide relief to those with student loans, borrowers have been placed in administrative forbearance. This allows you to temporarily stop making those monthly payments. The suspension will last until September 30, 2020. It’s automatic so that means you do not need to contact your student loan servicer to request it.
During this time, most loans will also see a zero percent interest rate. If you do choose to make payments during the 0% interest period, the full amount of your payments will be applied to the principal but only once all the interest accrued prior to March 13 is paid.
That’s important to remember.
On the flip side, if you made or make any payments during the administrative forbearance period and need that money back to get through these difficult times, you can call and request a refund.
Read more on the Federal Student Aid’s official website.