All borrowers with federally held student loans will have their payments automatically suspended until 2021 without penalty. Federal student loan borrowers were already in an automatic interest-free pause on payments as part of the original coronavirus relief bill, known as the CARES Act. The new extension to 2021 was enforced starting August 8, 2020.
Our Recommendation: If you’re facing financial hardship, we recommend talking to your loan service provider now. January 2021 is just around the corner, so don’t wait. Keep yourself in a position so that a defaulted payment is not recorded to your credit history. There maybe repayment plan options that fit your situation. Find out more here.
Take a moment to listen to our discussion on the Student Loan Debt Crisis with an expert back in April. Access the discussion here or click the image below.
If you have additional questions, contact The Rice Firm at (205) 618-8733.