According to the law, student loan servicers should not report nonpayment during forbearance as missed payments. On March 20, 2020, my Administration took action to provide immediate relief to tens of millions of student loan borrowers during the pandemic caused by … Nonprofit student loan counseling agency Take Charge America shares options for borrowers to consider as the end of coronavirus forbearance nears. If you think your loans qualify for the six-month forbearance but you’re not yet receiving it, contact your servicer directly. WASHINGTON – U.S. Secretary of Education Betsy DeVos announced today the extension of the federal student loan administrative forbearance period, the pause in interest accrual, and the suspension of collections activity through January 31, 2021. Check out these smart borrowing tips today. There are four income-driven repayment plans available, and each have their own features, benefits and drawbacks. It’s unclear how many borrowers have experienced this, but Great Lakes, one federal student loan servicer, addressed the issue, stating it didn’t believe its credit reporting was negatively affecting credit scores. Should you have any questions about your loans and these relief efforts, sign in to your online account or contact us for assistance. However, we have other options available to assist you with your student loan payment. WASHINGTON – U.S. Secretary of Education Betsy DeVos announced today the extension of the federal student loan administrative forbearance period, the pause in interest accrual, and the suspension of collections activity through January 31, 2021. The browser you are currently using has Javascript turned off. 2 Mortgage debt and student loan debt rank as the number one and two largest categories of outstanding household debt, respectively. Income-driven repayment plans cap monthly payments at a percentage of a borrower’s discretionary income (the cap depends on which plan you’re enrolled in, but will be between 10% and 20%). You may opt-out by. In my opinion, an extension of forbearance plans would have happened regardless of who won the White House. Under the CARES Act, the expanded six-month payment relief is automatic, and it runs from March 13 through Sept. 30, 2020. The forbearance policies enacted by the federal government through the coronavirus relief bill (commonly referred to as the CARES Act) addressed two consumer credit products: mortgages and student loans. Previously, I covered personal finance at other national web publications including Bankrate and The Penny Hoarder. This article explains what student loan forbearance is, the different types, loans that qualify, and other important information. Your loan will continue to appear on your credit reports, and the account will remain listed in good standing. Many creditors and lenders are offering special repayment options on a variety of debts due to the severe and immediate economic impact of the Covid-19 pandemic. COVID-19 Forbearance and Loan Relief Programs / \. functional. Federal student loan forbearance not extended in COVID-19 stimulus bill WASHINGTON (Gray DC) - The $900 billion, 5,593-page stimulus bill does not address student loan debt. Finance, CBS News Radio and more. The interest rate on all U.S. Department of Education (ED) held student loans serviced by FedLoan Servicing have been temporarily reduced to 0% through January 31, 2021. Airline Seating And Mask COVID-19 Policies, Here’s How 5 Million Investors Reacted To The Covid-19 Selloff Earlier This Year, Cancelling Student Loans Is An Insidious Idea 10 Years In The Making, are not eligible for automatic forbearance. FedLoan Servicing is a Servicer to Federal Student Aid. Federal student loan flexibilities for the COVID-19 emergency have been extended through January 31, 2021. Individuals with no income will qualify for a $0 payment. NOTE: Borrowers will be required to submit a Public Service Loan Forgiveness (PSLF) & Temporary Expanded PSLF (TEPSLF) Certification & Application to certify employment for the suspended payments to qualify towards the 120 needed for forgiveness. Federal student loan forbearance not extended in COVID-19 stimulus bill According to the Federal Reserve, Americans face $1.7 trillion in student debt. Direct Debit is the most convenient way to make your student loan payments—on time, every month. 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