Principal and interest payments on federally-held student loans are automatically suspended through December 31, 2020.
The CARES Act suspended principal and interest payments on federally-held student loans through September 30, 2020, and an Executive Order directed the Department of Education to extend the suspension until December 31, 2020. The Department of Education extended other student loan benefits in the CARES Act until December 31, 2020.
What you need to know:
From March 13 through December 31, 2020, the interest rate is set to 0% and payments are suspended for student loans owned by the federal government. If you made a payment toward your federally-held student loans after March 13, you can request a refund from your student loan servicer.
PRO TIP: If you are financially able to make payments or continue making regular payments on your student loans, any payments you make after March 13th will be applied directly to principal. This will help you pay off your loans faster.
TAKE A FREE CLASS!
Blog editor and Accredited Financial Counselor sharing real-life money smarts that can help you stay on track with financial goals while still enjoying life!
Follow the fun on Instagram
AS SEEN ON
Take a free class!
1st Place National Award in Social Media Education from the National Extension Association of Family and Consumer Sciences
Gold Award in Blog Site category at the 7th annual Education Digital Marketing Awards.
Silver Award in New Media category at the 34th annual Educational Advertising Awards.
Platinum Award in Digital Media, Web Design category at the International Marketing and Communication Awards.