This Week in Student Loans: April 3April 3, 2020
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While we typically share several top stories in our This Week in Student Loans roundup, the majority of us are aware of the major changes going on within the global economy. For that reason, we’re sharing a key article that highlights all of the major changes that have occured over the past week in the world of student loans.
Here’s Everything That’s Happened With Your Student Loans In 2 Weeks
In case you missed it, the economic impact of the coronavirus drove the federal government to pass the Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act, on March 22. The act included some major changes to student loans. In this article, Forbes writer Zack Friedman highlights everything that has changed in regard to student loans over the past two weeks. To summarize:
- Through September 30, 2020, all federal student loan payments are suspended.
- The interest rate on all federal student loans automatically has been set to 0% through September 30, 2020.
- The federal government temporarily has halted garnishment of wages, Social Security benefits and tax refunds for student loan debt collection through September 30, 2020.
- If you’re attempting to qualify for Public Service Loan Forgiveness, you can pause your federal student loan payments through September 30, 2020 and your non-payment will count toward the 120 payments.
- If you’re enrolled in an income-driven repayment plan, the benefit above also applies to you. If you pause payments, they will count toward the required 20 to 25 years of monthly payments for student loan forgiveness.
- Through December 31, 2020, your employer can pay up to $5,250 of your student loans tax-free.
The article is filled with helpful links to learn more about the status of federal student loans and coronavirus relief.
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