The CARES Act, which is currently active, allows borrowers of federally-held student loans receive a payment suspension for the remainder of the year. The legislation was passed in March suspending payments through September has now been extended by President Trump through December 31st, 2020.
The payment pause ensures that borrowers don’t fall behind on their loans since it includes a suspension of interest on the loans. Basically, the suspension extends the amount of time a borrower will pay by the number of payments not made during the period. Borrowers who take advantage of not making payments won’t see interest accrue over that time.
For borrowers who are not experiencing financial difficulties should consider making payments throughout the hiatus. By making payments during the pandemic, borrowers can benefit from the interest suspension and pay off their loans faster.
If you would like more information on student loans and your options, please contact our staff.
