WHAT SHOULD I DO IF I CAN’T PAY MY STUDENT LOANS?
All Federal student loans issued by the Department of Education have had interest accrual suspended from March 13th until September 30. This means that, even if you make regular student loan payments, the interest will not accrue during this time. If you make payments during this time, you will likely see your total balance decrease faster because the payments will be applied only to principal and already-accrued interest, since new interest is not accruing during this time. The Department of Education has also stopped all wage garnishments and collection agent activities for delinquent student loans, and will be issuing refunds to anyone whose wages have been garnished after March 13, 2020.
All Federal student loans issued by the Department of Education have also been placed into administrative forbearance, with payments temporarily suspended, until September 30th. This means that you do not owe payments on these loans until September 30th. Your servicer has been directed to automatically place your loans into forbearance and stop auto-debits from being withdrawn. Please consult the section regarding the Federal CARES Act for more information about this program.
Please contact your servicer for information about these programs. As many businesses have switched to teleworking or remote working, you may have trouble getting through on the phones. Please try to communicate with servicers via email or Internet wherever possible to avoid this.
For further information regarding Federal student loans, please visit https://studentaid.gov/announcements-events/coronavirus.
These programs do not apply to Federal Perkins loans held by the institution you attended, or private loans. Please contact the servicers for these loans to see if they have any programs to help borrowers having difficulty making payments.