Here’s how to get student loan forbearance due to coronavirus
If you need more time to pay your student loans, here’s how to stop paying your student loans for 60 days without penalty.
Here’s what you need to know.
If you have federal student loans, there is good news. You can now stop paying your federal student loans for 60 days. Federal interest on student loans will be waived also. New York Governor Andrew Cuomo announced similar plans when he temporarily suspension of student loan debt collection and also suspended mortgage payments for those who encounter financial difficulties. Here’s how to get 0% interest, delay your federal student loan payments, and get relief for your student loans due to the coronavirus:
How to get a 0% interest rate
- As of March 13, 2020, the interest rate on your federal student loan will be temporarily set at 0%. Yes, 0%.
- You don’t need to fill out any forms or request a 0% interest rate from your federal student loans manager. Your student loan manager will automatically change your interest rate to 0%.
- It is important to note that this 0% interest rate only applies to federal student loans, not private student loans.
- You will not owe any interest on your federal student loans during this 60 day period.
How to obtain an administrative abstention
- If you want to suspend your federal student loan payments for 60 days without penalty, you can contact your federal student loan officer to request an administrative forbearance. It is not automatic.
- If you choose this option, you will not have to make a federal student loan repayment for 60 days.
- It is important to note that this only applies to federal student loans held by an agency of the federal government. If you are not sure whether your student loans qualify, contact your student loan manager to confirm.
- If you are seeking a civil service loan forgiveness, the suspension of your federal student loan payments will not count toward the 120 required payments. That said, the program does not require back-to-back payments, so you can simply resume your federal student loan payments after the temporary period ends and still be eligible for your student loan waiver.
What if you still want to pay off your student loans?
- You do not have to suspend the repayment of the student loan for 60 days; it is optional.
- During the 60-day period, you can still pay your federal student loan in full.
- If you choose to continue paying your federal student loans, you will still make the full monthly payment on your student loan (even if your interest rate is temporarily set at 0%). The amount of your monthly payment does not change.
- It is important to note that your full payment will be applied to your principal balance only (after all student loan interest by March 13 has been paid).
List of major federal student loan officers
You can contact your student loan duty officer concerning an administrative abstention due to the coronavirus. Here is a list of student loan services for federal student loans owned by the US Department of Education. If you are unsure who your student loan administrator is, you can call Federal Student Aid at 1-800-433-3243.
Student loan forgiveness
A 0% interest rate is different from canceling a student loan. There is no student loan cancellation plan directly linked to the coronavirus. Senate Democrats have proposed suspend student loan payments and cancel student loans of at least $ 10,000. Representative Alexandria Ocasio-Cortez (D-NY) tweeted last week that student loan payments should be suspended. Senator Bernie Sanders (I-VT) a offered to forgive the $ 1.6 trillion in student loan debt, including federal and private student loans. Former Vice President Joe Biden has his $ 750 billion student loan plan, which he opposed to the Sanders plan. Biden and Sanders both Support the civil service loan forgiveness program. Last month Trump requested the end of the civil service loan forgiveness program in his annual budget in favor of a simplified income-based repayment plan. U.S. Education Secretary Betsy DeVos explained why she thinks it’s a good idea to end this student loan forgiveness program.
Your next move
Whether you’re enjoying 0% interest or forborne, now is a good time to assess your federal and private student loans and determine your best path. Here are four starting points, all free: