If you have a federal student loan...
Under the CAREs Act, Federal student loan payments and interest accrual may be deferred until September 30th of this year.
- You do not need to make any payments on your Federal student loans until September 30th. You should contact you loan servicer to confirm no action is required for you to benefit.
- You should ensure any auto-payments are turned off by contacting your student loan service provider or going online.
- If you are using Public Service Loan Forgiveness, any payments you skip between now and September 30th will still count toward your required 120 payments.
- If your loans are in default now, once the suspension ends on September 30th, they will remain in default.
- There will be no garnishment (forced seizure) of wages, tax refunds, or Social Security income for student loan debt collection until September 30th.
- Interest on student loans will be paused until September 30th. This means any payments that you choose to make between now and September will directly pay down your loan principal.
- If your income is unaffected, you may want to consider continuing to make payments. This will pay down your student loans faster.
However, these benefits are not for student loans that have been refinanced to private loans. You should contact your student loan servicer to learn more.