Student Loan COVID: Everything You Need to Know
Introduction
Hey readers,
Are you a student loan borrower who’s feeling overwhelmed by the uncertainty surrounding COVID-19? You’re not alone. The pandemic has thrown a wrench in the finances of millions of Americans, and student loan payments are no exception.
In this article, we’ll walk you through everything you need to know about student loans during COVID-19. We’ll cover the latest updates, payment options, and other resources that can help you manage your debt during these challenging times.
Payment Pauses and Forbearance
One of the biggest changes to student loans during COVID-19 has been the pause on payments. This pause was originally implemented in March 2020 and has been extended several times since then. The current payment pause is set to expire on May 1, 2023.
During the payment pause, you are not required to make any payments on your federal student loans. However, interest will continue to accrue on your loans, which means that your balance may increase slightly during this time.
Loan Forgiveness Options
In addition to the payment pause, there are also a number of loan forgiveness options available to student loan borrowers who are facing financial hardship due to COVID-19. These options include:
Public Service Loan Forgiveness (PSLF)
PSLF is a program that forgives the remaining balance on your federal student loans after you have made 120 qualifying payments while working full-time for a qualifying public service employer. COVID-19 has made it easier to qualify for PSLF, as certain periods of unemployment and economic hardship can now count towards your 120 payments.
Teacher Loan Forgiveness
Teacher Loan Forgiveness is a program that forgives the remaining balance on your federal student loans after you have taught full-time for five consecutive years in a low-income school. COVID-19 has also made it easier to qualify for Teacher Loan Forgiveness, as certain periods of unemployment and economic hardship can now count towards your five years of service.
Other Resources
In addition to the payment pauses and loan forgiveness options, there are a number of other resources available to student loan borrowers who are struggling due to COVID-19. These resources include:
Income-Driven Repayment (IDR) Plans
IDR plans are designed to lower your monthly student loan payments based on your income and family size. If you are struggling to make your student loan payments, you may be able to qualify for an IDR plan.
Deferment and Forbearance
Deferment and forbearance are two programs that allow you to temporarily postpone your student loan payments. Deferment is available if you are enrolled in school at least half-time, while forbearance is available if you are experiencing financial hardship.
Table of Student Loan COVID-19 Relief Options
Program | Description | Eligibility |
---|---|---|
Payment Pause | Suspends payments on federal student loans | All federal student loan borrowers |
PSLF | Forgives the balance on federal student loans after 120 qualifying payments | Certain public service employees |
Teacher Loan Forgiveness | Forgives the balance on federal student loans after five years of teaching in a low-income school | Certain teachers |
IDR Plans | Lowers monthly payments based on income and family size | Federal student loan borrowers with financial hardship |
Deferment | Postpones payments while enrolled in school at least half-time | Federal student loan borrowers |
Forbearance | Postpones payments due to financial hardship | Federal student loan borrowers |
Conclusion
It’s important to remember that you are not alone if you are struggling to manage your student loans during COVID-19. There are a number of resources available to help you, and we encourage you to reach out to your loan servicer or a financial advisor if you need assistance.
For more information on student loans and COVID-19, please visit the following websites:
- Federal Student Aid
- Consumer Financial Protection Bureau
- National Council of Higher Education Resources
FAQ about Student Loan COVID Relief
What is the student loan payment pause?
The federal student loan payment pause has been extended to May 1, 2022. This means that you are not required to make payments on your federal student loans until that date.
Will my student loans be forgiven?
There is no blanket forgiveness of federal student loans. However, there are several loan forgiveness programs available, and you may qualify for one.
What if I have private student loans?
The payment pause and other COVID-19 relief measures only apply to federal student loans. If you have private student loans, you should contact your lender to discuss your options.
What should I do if I can’t afford to make my student loan payments when they resume?
If you can’t afford to make your student loan payments, you have several options. You can contact your loan servicer to discuss income-driven repayment plans, deferment, or forbearance.
How can I apply for loan forgiveness?
There are several different loan forgiveness programs available, each with its own eligibility requirements. You can learn more about loan forgiveness programs and apply at StudentAid.gov.
What is the difference between deferment and forbearance?
Deferment and forbearance are both ways to temporarily stop making payments on your student loans. However, deferment is only available for certain reasons, such as being enrolled in school or serving in the military. Forbearance is available for a wider range of reasons, including financial hardship.
Can I consolidate my student loans during the payment pause?
Yes, you can consolidate your federal student loans during the payment pause. However, you should be aware that consolidating your loans may result in a higher interest rate.
When will the payment pause end?
The payment pause is currently scheduled to end on May 1, 2022. However, it is possible that the payment pause could be extended again.
What should I do if I have questions about my student loans?
If you have questions about your student loans, you should contact your loan servicer. You can find your loan servicer’s contact information on your monthly billing statement.