The recent passing of the Cares Act has important implications for our graduates who are currently repaying their loans. The Cares Act provides much needed financial relief of loan payments during this uncertain time.
Please see the below summary and additional links to learn more about this legislation.
For all federal student loans owned by the U.S. Department of Education (includes all DIRECT LOANS):
- Interest is waived until September 30, 2020 (no action required by student/borrower)
- Loans in active repayment will be placed on an ADMINISTRATIVE FORBEARANCE for six months thereby suspending repayment until September 30, 2020 (no action required by student/borrower)
- These months will count as qualifying months toward all forgiveness benefits including PSLF
- Borrowers must contact their loan service if they want to “opt out” of this administrative forbearance
More information - https://studentaid.gov/announcements-events/coronavirus
Read actual legislation (Section 3515) - https://files.taxfoundation.org/20200325223111/FINAL-FINAL-CARES-ACT.pdf
Join Accesslex for an informative webinar - https://www.accesslex.org/covid-19-updates-and-resources