Updated May 17, 2020
In March, the U.S. Department of Education (DOE) announced its plan for substantial student loan debt relief during the COVID-19 pandemic. The stimulus package automatically and retroactively places loans in forbearance and includes an interest waiver from March 13, 2020 thru September 30, 2020.
Certain loan types are excluded from the emergency Coronavirus Aid, Relief, and Economic Security (CARES) Act passed March 27, 2020. Generally speaking, monies distributed by commercial banks or private lenders – including the Family Federal Education Loan Program (FFELP) – do not qualify for the CARES Act debt relief.
LOOKING FOR REPAYMENT OPTIONS? CONTACT YOUR LOAN SERVICER FOR DETAILS
Additionally, the DOE ordered a temporary suspension of wage garnishments against defaulted loans. However, since the announcement in March, it is unclear if lenders are following the order to halt collections.
In May, a lawsuit was filed against the U.S. Department of Education for continued wage garnishments despite the relief outlined in the CARES Act.
CLICK HERE FOR INFORMATION ABOUT DELINQUENT PAYMENTS OR DEFAULTED LOANS
Access updated information from the Department of Education about the loan forbearance initiative and school closures. StudentAid.gov also hosts an extensive Borrower Q & A list.
HOW FINANCIAL AID WORKS FOR YOU:
Complete the Free Application For Federal Student Aid (FAFSA) for an all-in-one request for federal grant and loan monies. To maximize the financial aid amount offered, it’s best to submit your FAFSA at the beginning of the calendar year.Contact 2 Kings Consultant Services