May 8, 2020

Here’s How COVID-19 Affects Student Loan Forgiveness

Here’s How COVID-19 Affects Student Loan Forgiveness

COVID-19 may affect student loan forgiveness more than you realize.

Here’s what you need to know.

Student Loan Forgiveness

More frequently, there are new proposals for student loan forgiveness. This includes proposals for student loan forgiveness for health care workers and presidential candidate Joe Biden’s plan to forgive student loan debt. Even members of Congress owe a significant amount of student loans. What about the two major existing plans for student loan forgiveness: income-driven repayment and public service loan forgiveness? Currently, if you are pursuing student loan forgiveness, you can enjoy several benefits for your federal student loans through September 30, 2020. Under the CARES Act – the $2.2 trillion financial stimulus package – federal student loan payments are paused and interest rates have been set to 0%. Importantly, make sure your federal student loans qualify. For example, FFELP loans and Perkins Loans won’t qualify for these benefits, since the U.S. Education Department doesn’t own these loans.

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