Big Announcement – Student Loan Waivers
On Friday, President Trump said he would waive interest on federal student loans. But what does this really mean since your monthly payments aren’t going to go down at all? It means that the entire payment will go toward paying down the principal amount on the loan and not the principal plus the daily interest.
Keep in mind that not all loans are eligible for the waiver:
- Private loans
- Federal Family Education Loans
- Perkins loans held by your school
If you anticipate having trouble making your minimum student loan payment, contact your lender to discuss your options. If you find yourself out of work for any length of time during the coronavirus outbreak, it’s likely you’ll be able to pause your student loan payments until your income stabilizes.
UPDATE (as of March 25, 2020)
The government has also added that individuals can receive Emergency Forbearance for student loan payments for the next 60 days, with the possibility of an extension if needed. At this point there hasn’t been a decision made regarding private student loans. Contact your student loan provider to see what options you have regarding repayment.
UPDATE (as of April 13, 2020)
On March 25, the U.S. Senate passed a bill extending the initial interest waiver to offer a total of six months of 0% APR on federal student loans, as well as extend the coronavirus forbearance period for the same amount of time.