In response to COVID-19, President Trump signed the CARES ActAs a result, the government temporarily waived future interest charges and suspended payments on certain federal student loans through September 30, 2020. President Trump recently extended the student loan benefit until December 31, 2020.
Here’s what you can expect:
Which loans are eligible for the interest rate waiver?
The interest waiver only impacts federal student loans held by the federal government. Perkins loans and FFEL loans that were issued prior to July 1, 2010, and are still held by private parties are not included, so be sure to verify which type of federal loan(s) you have.
The government is not covering interest charges for private student loans like those provided by College Ave or other private lenders.
Does this change my required monthly payment on federal student loans?
Yes. Federal Direct loan(s) that are not in default and FFEL loans owned by the government have all payments automatically suspended through September 30, 2020.
The CARES Act does not automatically suspend payments on private student loans or Perkins loans and FFEL loans that were issued prior to July 1, 2010, and are still held by private parties.
You should continue to review all your monthly student loan statements for any changes and to make sure you know which loan(s) are covered by the CARES Act.
What do I do if I can’t make my payments on loans that aren’t held by the Federal Government?
If you can’t make your monthly payments. Don’t ignore the problem. Contact your federal and private loan servicer(s) to discuss your options. You may be eligible for deferment or forbearance to temporarily put your payments on hold.
If you can’t make payments on your College Ave loans because of COVID-19, learn more about the program we have available.