A Pandemic Is Raging. Some Student Loan Payments Are Still Due
The deluge of COVID-19-fueled layoffs and furloughs across the United States has threatened to deepen the financial hole millions of Americans with student loan debt find themselves in.
But the federal government hasn’t been totally idle on the issue. The $2 trillion Coronavirus Aid, Relief, and Economic Security (CARE) Act provided forbearance with zero interest from March 13 through Sept. 30—and stayed collections lawsuits. These measures mean eligible borrowers won’t have to worry about making payments, and payments should soon (by April 10) halt automatically. Borrowers can also turn off auto-pay in the meantime, and request a refund of any installment paid March 13 or later.
Problem is, only one class of borrowers is eligible: those who owe money directly to the federal Department of Education. Experts said the most fundamental move student loan debtors should make during this cascading national pandemic is to figure out if the relief program applies to them.
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