will the student loan forbearance be extended into 2021

If you’re in the private sector: try to make the same. The Department continues to update ed.gov/coronavirus with information on COVID-19 for students, parents, educators, and local leaders. “The coronavirus pandemic has presented challenges for many students and borrowers, and this temporary pause in payments will help those who have been impacted,” U.S. Secretary of Education Betsy DeVos said. One servicer may automatically resume payments. The incoming administration has proposed a series of changes that could affect more than 42 million student loan borrowers. As long you were still working full-time for a qualified public service employer during the automatic forbearance, you basically got a break. Your federal student loans are in loan rehabilitation. Loan servicers will reach out to borrowers to let them know when it’s time to start making payments again. Federal student loan forbearance not extended in COVID-19 stimulus bill. Ultimately, borrowers may be able to avoid making payments until much later in 2021, experts say. If you have federal student loans, your payment reprieve has just been extended. Since borrowers are entitled to up to 360 days of forbearance… Now is the time, though, to decide what to do before your bill arrives in January 2021. On Aug. 21, Secretary DeVos fulfilled President Trump's Aug. 8 Memorandum on emergency federals student loan relief by extending the CARES Act borrower benefits until December 31, 2020. 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. Your servicer’s online customer service portal may have copies of any communication sent to you. Editorial Note: Forbes may earn a commission on sales made from partner links on this page, but that doesn't affect our editors' opinions or evaluations. On Monday, Congress approved a second coronavirus relief package that features $600 stimulus checks for a lot of people — To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. 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. On December 4, U.S. Secretary of Education, Betsy DeVos announced that the student loan forbearance period would extend through January 2021. © 2020 Forbes Media LLC. If you consolidated your federal loans into one loan with one payment, your loans still operate by the rules of the automatic forbearance. Student Loan Forbearance Extended to 01/31/2021. WASHINGTON – U.S. Secretary of Education Betsy DeVos announced today the extension of the federal student loan administrative forbearance period, the pause in interest accrual, and the suspension of collections activity through January 31, 2021. But many already benefited from some unprecedented events in 2020:— An administrative forbearance … Until the interest rate freeze is officially extended, borrowers should be prepared for 0% interest to end on January 31st, 2021. DeVos Extends Federal Student Loan Payment Suspension Into 2021. Repayments for student loans generally don’t start until six months after graduation, which would begin after the existing forbearance extension ends. Millions of student loan borrowers might be required to resume federal student loan payments on Feb. 1, 2021. Our mission is to promote student achievement and preparation for global competitiveness by fostering educational excellence and ensuring equal access. ... than $900 billion — and they’re anxious to learn if the relief will continue into 2021. If you lost your job during automatic forbearance, you will no longer receive credits for payment beginning from the date you became unemployed. Forbes adheres to strict editorial integrity standards. If your contact information isn’t up-to-date, you should contact your servicer or log in to your account prior to the end of the year and make sure all information is still accurate. While you don’t want to count on an extension until it happens, you should monitor the Department of Education website for program changes. Perfect time to start making payments % interest to end Sept. 30 for more information about COVID-19, visit! Through September 30 student borrowers had been expected to resume in February, the! 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