Student Loan Forbearance In The Coronavirus (COVID-19) Stimulus: What You Need To Know – Forbes
President Donald Trump and the U.S. Department of Education previously announced student loan relief in response to widespread economic hardship due to the coronavirus (COVID-19) pandemic. Now, Congress’ $2 trillion stimulus package is expected to expand that relief.
Under the stimulus package passed by the Senate on late Wednesday, federal student loans will automatically have their interest rates set to 0% for a period for six months. Additionally, borrowers do not have to make payments during that six-month period.
Here’s what you need to know.
The Six-Month Suspension Of Payments Will Be Automatic
Last week, The Department of Education’s guidance directed borrowers to contact their student loan servicers and request forbearance, or a suspension of payments. Now, according to the stimulus package, the expanded six-month payment relief will be automatic.