A little adjustment for those Republicans out there who think student loan forgivness is ALL about Democratic President Joe Biden….
I hope some Federal lawyer going before the Supreme’s mention’s this….
Update: On March 13, 2020, as part of his emergency declaration for the coronavirus, Trump announced that he would be freezing/waiving student loan interest AND payments on student loans held by the Federal government. President Biden extended the waiver through January 31, 2022.
It’s important to note that this is pretty limited for borrowers. Loans held by the Federal government refers to “Direct” student loans and some FFEL loans, not all FFEL loans, Perkins loans, or private loans. That means if you have FFEL loans or private loans, you don’t qualify for this waiver of interest.
Also, any loans in collections will have collection activities suspended for the time being.
Finally, if you’re going for loan forgiveness programs like Public Service Loan Forgiveness, the payments “missed” during this pause will still count towards your eligible payments.
This program is very helpful for borrowers trying to navigate the pandemic. By pausing student loan payments and interest, Trump has freed-up much needed spending in people’s budgets. Yes, there are other ways to help, but this is an easy solution to help borrowers.
For borrowers losing work and income due to the coronavirus, it’s essential that you immediately update or apply for income-driven repayment with an income that reflects what you’re currently earning (especially if it’s $0). This is the best course of action to not go into default on your student loans after the Covid-19 student loan deferment end….
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