Covid Time has changed everyone’s life – and that includes college graduates who still have student loans! 89% of them are NOT making their Student Loans. Yes, right now, only 11% of government student loans are being repaid. Mark Kantrowitz with Savingforcollege.com says it’s not as bad as it sounds. “Loans that are in the Direct Loan Program – the bulk of Federal Loans these days – are in a payment pause this year. So it’s not surprising that only 11% of the loans are being paid.Their obligation to make payments during the pandemic and through the end of 2020 has been suspended and the interest is not accruing.”
Even private lenders of student loans are offering help by offering a private loan forbearance for 90 days. Kantrowitz adds that there’s plenty of student loan funds available now because there’s not much demand for room and board funds. Kantrowitz says even with fewer payments coming in, there’s still plenty of financial aid available for current students because demand is low due to lower needs for virtual education.