Nearly All Borrowers Utilizing CARES Act Payment Suspension, Quarterly FSA Data Report Shows – NASFAA
A vast majority of borrowers who have federal Direct Loans (DL) are taking advantage of the payment suspension enacted under the Coronavirus Aid, Relief and Economic Security (CARES) Act, according to a quarterly report released this week by Federal Student Aid (FSA) outlining federal aid applications, loan disbursements, delinquencies, and other measures of student aid programs.
Roughly 300,000 DL borrowers had loans in a repayment status as of June 30, 2020, compared with the nearly 19 million borrowers who were in a repayment status just one year ago.
The most recent quarterly report is the first snapshot of how borrowers utilized the pause in payments, as the previous report collected data through March 31 — after President Trump’s executive order pausing student loan payments and interest accrual but before enough time had passed to accurately reflect the impact of the COVID-19 pandemic on borrowers.
The approximately 300,000 borrowers still making payments are mainly those who have opted out of the CARES Act payment suspension, FSA noted.