College Students, Student Loans, and COVID-19
FOR THOSE WHO OWE STUDENT LOANS:
WHAT CHANGES HAVE BEEN MADE TO THE FEDERAL STUDENT LOAN PAYMENT PROGRAM IN LIGHT OF COVID-19?
Student loan payments have been automatically suspended for six months through September 30, 2020. All interest on loans is waived during this period of time, too. You can keep paying your student loan payment if you are able and want to do so.
Any non-payments during this period will be considered eligible payments for the purposes of any forgiveness programs like the Public Service Loan Forgiveness program. For those who want more information regarding PSLF, please look HERE.
If you were already delinquent on your loans before COVID-19, you will be placed into automatic forbearance during the duration of the national emergency. Administrative forbearance will last for 60 days, starting March 13, 2020, and may be extended depending on the status of the emergency.
Borrowers will be notified in August that their repayments will start again soon with the option to enroll in other relief options.
Federal student loans only – not applicable to private student loans. If you have private student loans, you can still call your loan servicer to ask for an arrangement.
Employer-provided student loan repayment will now be tax-free, instead of counting as taxable income, through the end of this year.
FOR COLLEGE STUDENTS:
For students who dropped out of school as a result of COVID-19, students do not have to repay Pell grants or other federal student loans.
Colleges can still provide work-study payments to students who are unable to work due to school closures.
Student veterans will continue to receive their full housing allowance, even when a school moves to online classes.