Federal student loan payment suspension extended

Education


Publisher Moabtimes


Those who borrowed federal student loans received another repayment extension from the US Department of Education.

Image courtesy of USU Extension

The payment pause has been extended until May 1 and takes effect for all eligible borrowers, without prior consent. In fact, if you’re contacted by someone who says they can help you sign up for this benefit, it’s a scam.

Understanding the key details of this relief program is important for all borrowers. Here is a summary of the final relief program details that some people may miss:

Temporary payment relief is extended to eligible federal student loan borrowers. Certain federal loans (Family Federal Education Loan, Perkins Loans, etc.) are not eligible. Contact your federal loan officer (www.studentaid.gov) to find out if your loans are eligible.

If your loans qualify, the U.S. Department of Education has automatically changed the status of your loans to “administrative forbearance,” and no payment is required until May 1. If you’ve already set up automatic payments, check to see if any payments were processed. since March 13, 2020. If so, it is possible to obtain a refund.

If you haven’t repaid your federal student loans, the US Department of Education has suspended collection calls and billing statements until May 1. If your employer continues to garnish your wages, you will get a refund.

You have the option to continue making payments. In fact, any payment made during this 0% interest forbearance period will help you pay off your debt faster.

Remember that this relief program only applies to federal student loans. If you’re still not sure what kind of loan you have, here are two things you can do:

Pull your credit report for free at www.annualcreditreport.com. Look it up and find your lender or student loan servicer. Compare it to the full list of federal loan managers found at studentaid.gov/manage-loans/repayment/servicers.

Confirm which of your loans are federal by checking studentaid.gov/fsa-id/sign-in/landing or by calling the Federal Student Aid Information Center (FSAIC) at 1-800-433-3243.

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