Federal Student Loan Payments Suspended for 2 Months
Just yesterday I wrote about the Coronavirus Student Loan Interest Waiver Program, which paused interest on Federal Student Loans, but now today President Trump has announced that he’s also suspending all Federal student loan payments for a period of at least 2 months.
What does that mean for you?
If means you won’t have to make payments toward Federal student loans for at least the next 60 days, and that you won’t accrue any interest during this time period, meaning, student loans are effectively put on hold for at least the next 60 days.
And better yet, President Trump mentioned that if coronavirus issues don’t let up by then, it’s possible that he’ll agree to “extend that period of time”.
Please review this post, and my post covering Common Questions About the Coronavirus & Student Loans, then feel free to ask any other questions you might have in the Comments section below.
I’ll do my best to get you a reply within 24 hours!
How Do Student Loan Suspensions Work?
Even though the interest suspension program is being automatically applied to all Federal student loans, the new payment suspension program will not happen automatically; instead, you must apply for it.
To take advantage of the new coronavirus student loan suspension program, you’ll need to contact your Federal student loan servicing company and request to have your loans put in forbearance.
Federal Student Loan Forbearance Programs are already available to everyone, but under ordinary conditions, they typically increase the total amount of money you owe on your loans since they allow you to pause making payments temporarily, which allows more interest to accumulate on your outstanding debt.
But in this case, thanks to President Trump’s new program, you’ll be allowed to pause your loans via Forbearance, all without any interest or any sorts of penalties, fines, fees or other additional costs adding to your total debt.
Forgiveness or Even Cancellation May Be Coming Too
It’s great that the President is offering some form of temporary assistance for struggling borrowers, but two months really isn’t all that much in the grand scheme of things, especially for people buried in excessive student debt.
Fortunately, it does look like there may be even more help on the horizon, as several other proposals have been discussed in Congress, including a Democratic proposal to completely cancel all student loan payments for the entire duration of the coronavirus emergency.
Under the proposed plan, supported by Senators Elizabeth Warren, Chuck Schumer, Patty Murray and Sherrod Brown, the Federal Government would pick up the bill for all payments made during this time period, giving borrowers some much-needed relief from overbearing student debt payments.
Several other plans are still being discussed, though few seriously, including plans to cancel up to $10,000 of outstanding Federal student loans, and of course Bernie’s ever-present proposal to completely cancel all Federal student loans, period.
Should I Take Advantage of the Coronavirus Student Loan Suspension?
I would, if I were you, for one good reason: we have no idea how long the coronavirus emergency will last, and this is essentially interest-free, tax-free money being offered to you during a time of economic uncertainty.
Whether you need the money badly, or simply want to keep some cash on hand, there’s nothing like having a little extra funds in the bank during a crisis, and as long as your student loan servicing company will allow you to move quickly into, then back out of forbearance, then there’s really no downside to utilizing this program.
Make sure to contact your servicing company and ask them about the rules for this procedure, but don’t forget to ask them how easy it will be to place your loans back into repayment once the crisis ends, because you certainly won’t want to leave your loans in forbearance if interest accumulation and normal payment schedules resume.
To Get Help with Federal Student Loans
If you’re new to my site, make sure to view my other articles offering advice on dealing with Federal Student Loans.
Over the past 10 years, I’ve written more than 100 articles giving advice on all sorts of ways to deal with your debt, so you’re nearly certain to find something useful by browsing through the following links.
To get Help with Federal Student Loans, check out my Guides on:
Federal Student Loan Relief Programs
- Federal Student Loan Forgiveness
- Federal Student Loan Bankruptcy
- Federal Student Loan Consolidation
- Federal Student Loan Delinquency & Default
- The Federal Student Loan Rehabilitation Program
- Federal Student Loan Wage Garnishment
- Federal Student Loan Deferment
- Federal Student Loan Forbearance
- Federal Student Loan Repayment Plans
To Get Help With Private Student Loans
And if you’re got private student loan debt, then be sure to check out my articles on getting Help with Private Student Loans, including:
Private Student Loan Relief Programs
- Private Student Loan Forgiveness Programs
- Private Student Loan Consolidation
- Private Student Loan Bankruptcy
- Private Student Loan Defaults
If you have any other questions about student loans, then please feel free to post them in the Comments section below!
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Disclaimer:Information obtained from Forget Student Loan Debt is for educational purposes only. You should consult a licensed financial professional before making any financial decisions. This site receives some compensation through affiliate relationships. This site is not endorsed or affiliated with the U.S. Department of Education.