As we continue to navigate the COVID-19 pandemic, Docupop is here to keep you informed about the benefits and changes being made to most federal student loans and how they could affect your unique repayment situation. We know there is a lot to decipher right now, so here is a simple breakdown of the memorandum issued by the President on August 8th, 2020 that extends several benefits of the CARES Act, including those impacting federal student loans, currently in place.
How The CARES Act Extension Impacts Most Federal Student Loans
- The suspension of most federal student loan payments has been extended until December 31st, 2020.
- Interest rates will remain at 0% during this time, meaning no interest is accruing.
- Most importantly, the months of suspended payments will still count towards loan forgiveness if you currently meet the specified criteria and are in a qualifying repayment plan.
What do I Need to Do?
- For most borrowers, no further action is necessary. This extension should be automatically applied to your federal student loans by your servicer. However, with big changes like this, you may experience a slight delay before it is reflected on your online account.
What if I Want to Continue Making Payments?
If you want to continue making payments and take advantage of no interest accruing, you are more than welcome to do so! Automatic payments have been disabled during this suspension, but you can still submit manual payments through your servicer’s website or by mail.
Note: Any payments made will first be applied to the interest that accrued prior to March 13th, 2020, and then go towards your principal once that is paid.
More Frequently Asked Questions
If your specific question is not covered above, Docupop has compiled a list of the most frequently asked questions regarding these changes and encourage you to take a look. To view the full list of FAQs, click here now.
Still don’t see what you’re looking for? If you’re a member of Docupop or our sister company, Student Loan Services, our friendly Member Success Representatives are standing by to help at (866) 884-5021 during normal business hours.
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Additional Disclaimers: This article is general in nature and does not cover all of the details regarding The CARES Act, student loan forgiveness, or how your unique student loan situation may be impacted.