CARES Act Extends Student Loan Payments

Due to the CARES Act, a coronavirus relief initiative, borrowers have not had to repay their student loans since March. As the December 31 expiration of this pause of collections has been approaching, many borrowers have faced uncertainty. About 41 million borrowers had no way of knowing if the CARES Act legislation would be extended. Recently however, the United States Department of Education announced that the pause in collections activity will be extended through January 31, 2021. In their press release, they state, “Federal student loan borrowers will not be expected to make payments through January of next year, though they will continue to be able to do so and benefit from the 0% interest rate as they pay down principal. Non-payments will continue to count toward the number of payments required under an income-driven repayment plan, a loan rehabilitation agreement, or the Public Service Loan Forgiveness program.” 

Link to Article