Student Loan Payments Suspended, Interest-Free, As Coronavirus Hits

Advertiser Disclosure

Student Loan Hero Advertiser Disclosure

Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print to help you understand what you are buying. Be sure to consult with a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time.

Editorial Note: This content is not provided or commissioned by any financial institution. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by the financial institution.

Logo

We’ve got your back! Student Loan Hero is a completely free website 100% focused on helping student loan borrowers get the answers they need. Read more

How do we make money? It’s actually pretty simple. If you choose to check out and become a customer of any of the loan providers featured on our site, we get compensated for sending you their way. This helps pay for our amazing staff of writers (many of which are paying back student loans of their own!).

Bottom line: We’re here for you. So please learn all you can, email us with any questions, and feel free to visit or not visit any of the loan providers on our site. Read less

Update (Aug. 10, 2020): The U.S. government plans to extend the pause for student loan repayment. See the details here

All federal student loans will have their interest rates cut to 0% for at least two months, and anyone who wants to can suspend their payments completely, the U.S. Department of Education announced March 20.

Following up on plans announced a week earlier to waive student loan interest during the coronavirus pandemic, the department said in a statement all borrowers would also have access to two months or more of administrative forbearance, meaning their repayment would be paused, retroactively to March 13.

Payments will also be automatically suspended for anyone more than 31 days delinquent on their loan.

“Right now, everyone should be focused on staying safe and healthy, not worrying about their student loan balance growing,” Secretary of Education Betsy DeVos said in the statement.

Any borrower can request the deferment by contacting their student loan servicer either online or by phone.

It wasn’t immediately clear how long the new measures would last. However, the emergency move may soon be followed by much larger forms of student loan relief. Among possible moves, Senate Democrats are calling for the government to pay off $10,000 or more of each federal student loan borrower’s debt.

Published in News & Policy