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Corona Virus Student Loans: What You Need to Know

How to Get Help with Your Student Loans During the Coronavirus Pandemic

Hey readers!

The corona virus has affected all our lives in countless ways. One of the biggest challenges has been the economic fallout, which has made it difficult for many people to pay their bills, including student loans. If you’re struggling to make your student loan payments due to the pandemic, there are a few things you can do to get help.

  1. Contact your loan servicer. Your loan servicer is the company that manages your student loans. They can help you understand what options are available to you during this time and may be able to offer you a temporary deferment or forbearance.
  2. Apply for federal student loan relief. The federal government has taken several steps to help student loan borrowers during the pandemic, including suspending payments on all federal student loans until September 30, 2023. You can apply for this relief at StudentAid.gov.
  3. Consider student loan refinancing. If you have good credit, you may be able to refinance your student loans to a lower interest rate or longer repayment period. This can save you money each month.

What’s the Status of Student Loan Relief?

The current federal student loan payment pause is set to expire on September 30, 2023. However, there is some speculation that the Biden administration may extend the pause again. If you’re struggling to make your student loan payments, it’s a good idea to contact your loan servicer to see if you can get a deferment or forbearance.

What Are My Long-Term Options?

If you’re unable to make your student loan payments in the long term, there are a few options available to you:

  1. Student loan forgiveness. There are a few programs that can forgive your student loans, including Public Service Loan Forgiveness and Teacher Loan Forgiveness. If you qualify for one of these programs, you may be able to have your student loans forgiven after you make a certain number of payments.
  2. Student loan consolidation. If you have multiple student loans, you can consolidate them into one loan with a single monthly payment. This can make it easier to manage your payments and may also save you money on interest.
  3. Student loan rehabilitation. If you’ve defaulted on your student loans, you may be able to rehabilitate them. This process involves making regular payments on your loans for a period of time. Once you’ve rehabilitated your loans, you’ll be eligible for federal student aid again.

Table of Student Loan Repayment Options

Option Description
Deferment A temporary postponement of your loan payments
Forbearance A temporary reduction or pause in your loan payments
Student loan forgiveness A program that can forgive your student loans after you make a certain number of payments
Student loan consolidation A process that combines multiple student loans into one loan with a single monthly payment
Student loan rehabilitation A process that can help you get out of default on your student loans

Conclusion

If you’re struggling to make your student loan payments due to the corona virus pandemic, there are a few things you can do to get help. Contact your loan servicer, apply for federal student loan relief, or consider student loan refinancing. If you’re unable to make your student loan payments in the long term, there are a few options available to you, such as student loan forgiveness, student loan consolidation, or student loan rehabilitation.

For more information on corona virus student loans, check out these articles:

FAQ about Corona Virus Student Loans

What is the CARES Act?

The CARES Act is a law passed by Congress in March 2020 that provides relief to individuals and businesses affected by the COVID-19 pandemic.

What does the CARES Act do for student loans?

The CARES Act provides for an automatic suspension of federal student loan payments, interest accrual, and collection activities for six months, from March 13, 2020, to September 30, 2020.

When will my student loan payments resume?

After September 30, 2020, student loan payments will resume automatically unless you contact your loan servicer and request an extension.

Do I need to do anything to take advantage of the suspension?

No, the suspension is automatic. You do not need to contact your loan servicer to request it.

Can I still make payments during the suspension period?

Yes, you can still make payments if you choose. Any payments you make during the suspension period will be applied to your principal balance, which will reduce the amount of interest you pay over the life of the loan.

What if I can’t afford to make payments after the suspension period ends?

If you are having difficulty making payments after the suspension period ends, you should contact your loan servicer. They may be able to offer you forbearance or other repayment options.

Will the suspension period count towards loan forgiveness?

Yes, the suspension period will count towards loan forgiveness under both the Public Service Loan Forgiveness Program and the Teacher Loan Forgiveness Program.

What about private student loans?

The CARES Act does not provide relief for private student loans. However, some private lenders may be offering their own relief programs. You should contact your loan servicer to inquire about any available options.

Where can I find more information about the CARES Act and student loans?

You can find more information on the Federal Student Aid website: https://studentaid.gov/manage-loans/coronavirus

What if I have other questions?

If you have any other questions, you can contact your loan servicer or visit the Federal Student Aid website: https://studentaid.gov/manage-loans/coronavirus

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