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- Student loan payments deferred through December 31, 2020
- What does this mean for loan forgiveness programs?
- Loans not owned by the federal government excluded
Last week, U.S. Secretary of Education, Betsy DeVos, implemented President Trump’s student loan relief memorandum. On August 8, Trump instructed DeVos to extend the CARES Act’s student loan moratorium from September through the end of the year.
This means that, until January 1st, 2021, there will be a continued halt on federal student loan payments, interest on payments, and garnishment of wages. As for borrowers pursuing loan forgiveness programs, non-payments will continue to count towards the 120 payments required by the Public Service Loan Forgiveness program.
Unfortunately, this memorandum is limited to federal student loans owned by the United States Department of Education. All other loans, such as private loans, FFELP loans, and Perkins loans are not included in the pause; they will be treated all as private loans and given to the discretion of the loaners.
Check out our DSJ COVID-19 Information Center or call our offices at (516) 541-6549 to speak to our Coronavirus Response Team to stay current!
Sincerely,
Devin McQuillan
Associate, Creative Solutions
Contact:
516-541-6549 | Email