The COVID-19 pandemic has stalled and derailed the entire world. Academic sessions are halted, people are cooped inside their homes and to make matters worse, millions have had their income take a massive hit in this market. Student loans are a popular way to 美国留学 but with this pandemic mayhem repayment has become a huge issue, especially for those who have lost their jobs. However, it is possible to get a student loan relief for now.
Federal Student Loan Forbearance
The US government has recently passed the Coronavirus Aid, Relief, and Economic Security Act, or the CARES Act, which has issued a temporary forbearance on all federal student loans that come under the Act. This was initially announced for a period of six month from March. With no signs of this pandemic passing over as of now, this act has been extended to three more months, offering relief till the end of this year. Starting from March 13 during this period:
1. The interest rate for the loan will drop down to 0% and thus, interest will stop accruing if you miss payments.
2. You will not be forced to keep making payments as was mandated earlier.
3. If at any moment during this time you want to make full or partial payments towards your loan, you are free to do so without any consequence or impact on your interest.
4. There will be no late fees for the entire time that you are unable to make your payment.
5. The interest you had owed on March 12 won’t get added to the principal balance now.
You are not required to contact or request your loan service to start getting these benefits. It would be applicable immediately if you are eligible, and your loan statement would show a 0% interest automatically.
While the Federal Family Education Loan Program has been stopped since 2010, if you have had your education though these loans, there can be a number of situations in this case. If your loan is currently owned by the Department of Education, you will fall under the CARES Act, which means you will enjoy the benefits as those with Federal loans. However, if it is a commercial lender who owns the loan, you loan, you might be eligible for some relief such as unemployment deferment, economic hardship deferment, forbearance or income-driven repayment. You need to get in touch with your loan provider to work out a suitable solution to your particular situation
Private Loan Relief
A state-led initiative has assured relief for residents of the states of California, Colorado, Connecticut, Illinois, Massachusetts, New Jersey, Vermont, Virginia, and Washington. People who have student loans that are not held by the Department of Education are eligble for relief if their loans are held by one of the loan servicers, who are a part of this plan. Many private loan servicers even outside these states are offering complete or partial forbearance, or during this time. You can check with your provider to see if an arrangement can be worked out.
In these tough times is help at hand, so that you can get through this difficult phase without stressing over student loans, and can take care of yourself instead.