Federal Student Loan Relief
05/27/2020 | Archive
Are you or someone you know currently making federal student loan payments? In light of the COVID-19 pandemic, some welcome relief may be on the way.
Thanks to the recent passage of the CARES Act, the U.S. Department of Education will allow you to temporarily halt your federal student loan payments from March 13, 2020, until September 30, 2020.1
What should you do next?
At this time, no action is necessary. As part of this relief initiative, all federal student loans will be placed in an administrative forbearance and automatic payments will be paused March 13, 2020, through September 2020.
What about the interest?
Good news! During this same time period, interest rates are being set to 0% on the following types of federal student loans2:
- Defaulted and non-defaulted Direct Loans
- Defaulted and non-defaulted FFEL Program loans
- Federal Perkins Loans
What if I want to keep making payments?
It’s important to keep in mind that payments are still being accepted during this time period, but they won’t be automatic or required. Depending on your situation and goals, continuing to pay down your federal student loans may make sense, even during this challenging time.
An Apple Financial Services representative may be reached at 703-788-4817. Learn more at AppleServices.com.
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*Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (“CFS”), a registered broker-dealer (Member FINRA / SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. The Credit Union has contracted with CFS to make non-deposit investment products and services available to credit union members.
1. Ed.gov, 2020
2. Studentaid.gov, 2020
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