(During the Coronavirus (Covid-19) Pandemic)
According to the U.S. Federal Reserve, federalreserve.gov, as of January 2020, there are approximately 44.7 million Americans with student loan debt. The total student loan debt in the U.S. alone, is $1.64 trillion.
The average monthly payment on student loan debts range between $200-$299, with 11.1% of student loans 90 days or more past due or in default status.
For those of you who have student loans owned by the Dept. of Education, the interest rate on your student loan will be reduced to 0% from March 13, 2020 through September 30, 2020.
On March 27, 2020, President Trump signed the Coronavirus Aid, Relief, and Economic Securities Act (CARES Act), www.ed.gov, which provides assistance to those who have student loan debts.
From March 13, 2020, through Sept. 30, 2020, the interest rate is 0% on the following types of federal student loans owned by the Dept. of Education:
- Defaulted and non-defaulted Direct Loans
- Defaulted and non-defaulted FFEL Program loans
- Federal Perkins Loans
The Dept. of Education will automatically adjust your account so that interest does not accrue effective March 13, 2020.
You may still make payments on your student loans if you are able. All funds paid on your loans during this time will be applied to the principal amount once all interest that had accrued prior to March 13, 2020 has been paid in full.
Caveat: Please note that some FFEL Program loans are owned by “for profit” lenders, and some Perkins Loans are owned by the school you attended. These loans are not eligible for this benefit at this time. You should contact your loan servicer to determine if your loans are eligible at StudentAid.gov or call 1-800-433-3243; TTY for the deaf or hearing impaired 1-800-730-8913.