Forbearance of Student Loans due to Covid

COVID-19 Emergency Relief Flexibilities Extended Through at Least Sept. 30, 2021

The COVID-19 emergency relief flexibilities include but aren’t limited to the following relief measures for ED-owned federal student loans:

  • a suspension of loan payments

  • a 0% interest rate

  • stopped collections on defaulted loans

NOTE: You do not have to pay to get 0% interest or suspended payments for your student loans. Some companies may charge a fee to give you repayment help for federal student loans during the COVID-19 emergency. These companies are not affiliated with or endorsed by the U.S. Department of Education (ED). Learn more about avoiding student loan scams.

 

The Senate Committee on Health, Education, Labor and Pensions will hold a hearing this afternoon on forbearance. The panel has invited Thomas Post, who runs the Consumer Financial Protection Bureau’s Student Loan Borrower Assistance Division.

“I’ve been pushing for the bureau to make forbearance a priority in its enforcement,” Post said in an interview.

The hearing is open to the public and will be webcast.

Consumers have the right to forbear. Federal law makes certain “free of charge” (that is, zero cost) qualifying student loans, such as Stafford loans and Perkins loans, available to borrowers who are pursuing educational, vocational, or artistic endeavors.

For more details visit : https://studentaid.gov/announcements-events/coronavirus

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