Saturday, August 22, 2020

Latest Updates on CARES Act- Extended to December 31, 2020.


On March 20, 2020, the Secretary of Education directed the office of Federal Student Aid to provide the following relief on Federal Direct student loans:

  • suspend loan payments

  • stop collections on defaulted loans

  • set interest rates to 0% for a period of 60 days

On March 27, 2020, Congress passed, and the president signed into law, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which provides for the above relief measures through September 30, 2020. 

On Aug. 8, 2020, President Trump directed the Secretary to continue to suspend loan payments, stop collections, and waive interest on ED-held student loans until Dec. 31, 2020.

As you all know, things quite literally are changing by the day.  What was in place last month may not be next month.  Please, if you have any loans in deferment or forbearance and you're unsure how to proceed, please contact me.  If you feel comfortable communicating with your lender, by all means, I encourage correspondence with them.

Also, The Department of Education has a very helpful Q&A page where you may be able to find exactly what it is you are looking for HERE.

Please do not sleep on this!  This has been a great reprieve for many, but failure to ensure your Federal Loans are in good standing going forward could prove costly. It is your responsibility to follow up! 

I hope everyone is well and please continue to stay safe!

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