Buzz
President Trump stated today that borrowers of federal student loans can defer their payments for up to 60 days, though this option isn't automatically applied.
According to the Department of Education’s official announcement:
All borrowers of federally held student loans will have their interest rates reduced to 0% for at least 60 days. Additionally, these borrowers will have the opportunity to pause their payments for a minimum of two months to offer them more flexibility during the national emergency.
All borrowers with federally held student loans will have their interest rates automatically reduced to 0% for at least 60 days. Additionally, these borrowers can choose to pause their payments for a minimum of two months, offering more flexibility during the national emergency.
To suspend your payments, you must reach out to your loan servicer and request it. Your loans will be placed in forbearance, meaning no payments will be due.
Normally, interest would continue to accrue while your loans are in forbearance, but last week, the president announced that interest would be waived for most federal student loans. As a result, you won’t need to make payments for two months, and no interest will accumulate during this time.
However, you must request payment relief. While interest will be waived for most federal student loans automatically, you must call or contact your servicer online to request that they place you in forbearance, in line with the Department of Education’s decision.
If your federal student loan is more than 31 days overdue as of March 13, your payment schedule will automatically be suspended for the 60-day period.
If you're aiming for loan forgiveness through the Public Service Loan Forgiveness Program, it's recommended that you continue making payments, as mentioned in the press release. Your interest will still be automatically waived, and any payments you make will be applied to your principal balance.
According to the president, the 60-day suspension period may be extended if necessary.
