This Week in Student Loans: July 17, 2020July 17, 2020
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This week in student loans:
Student-loan borrowers could face headaches when loan payments resume
While the CARES Act has provided some form of student loan relief during a time of economic downturn, there are fears of what will happen to many borrowers when the federal government turns student loans “back on” September 30.
Student loan interest rates hit record lows, thanks to COVID-19
Due to the economic fallout from COVID-19, interest rates for federal student loans for the upcoming academic year will be fixed at the lowest levels in history.
Source: Yahoo Finance
Major student loan servicing changes: 5 tips to protect yourself
The U.S. Department of Education is planning to move forward with a major overhaul of its federal student loan servicing system as soon as December. Due to prior experiences in which the government has gone under contract with loan servicers to take over a portion of their loan portfolio, there is some fear that this will create confusion among the different servicers’ policies and guidelines. This Forbes article explains how to prepare for this change.
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