The U.S. Dept. of Education recently published information about student loan forbearance in response to the impact of the ongoing coronavirus crisis.
The Coronavirus and Forbearance is in connection with the Congress-approved CARES Act, signed into law by president Donald Trump last March 27, 2020 The law includes broad relief for borrowers who have been granted federal student loans. The CARES Act has automatically placed student borrowings under administrative forbearance, which means students and/or parents are allowed to temporarily stop making monthly payments on educational loans, up to September 30, 2020.
Although the CARES Act was enacted March 27, 2020, the date of effectivity for the suspension of payments was made retroactive from March 13, 2020.
Other Questions Raised in Connection with Student Loans and Financial Aid
Some students have put forward questions about the possibility of increasing the financial aid received, after their parents lost their jobs as a result of the coronavirus crisis.
In response to such queries, the U.S. Education Department recommends communicating with the financial aid office of the school. The department gives assurance that there are flexibility measures in place to enable students to stay in school and finish their course.
Generally, the recommendation is for students and/or parents to get in touch with schools via their website and inquire about the coronavirus-related guidance outlined for students, particularly with regard to student financial loans granted by private financial institutions.Under the forbearance scheme, students who will continue payment of their loans amid the health crisis, will not pay interest due on the loan.
The Education Department stated that although most schools transitioned to conducting classes through online systems, many continue to stay open in order to provide students not only answers to their questions but also assistance.