What You Need To Know About Income-Based Loan Repayment & COVID-19

 

Trumps’ executive memorandums from August 8th included the deferring of student loan payments and interest on payments until 2021. Additionally, the order suggested against the garnishment of wages and proposed that all deferred payments should still count toward requirements for Public Service Loan Forgiveness (PSLF). U.S. Secretary of Education, Betsy DeVos, officially implemented the extension of the student loan moratorium later that month.  What This Means For Income-Driven Repayment Plans  Borrowers who work full-time for qualifying employers will still have all non-payments during the loan suspension period counted towards those required for forgiveness under some income-driven repayment plans.  All borrowers have the option to continue paying off loans at full price or via partial payments, should they choose to do so. Lastly, if you are not currently enrolled in an income-based repayment plan, you can apply at any time.   What Steps You Should Take Next  Nothing to do right now for borrowers with any federally-held student loans. All payments and interest rates have been automatically suspended.   Visit the Federal Student Aid website for a full list of loan FAQs and to see what income-driven repayment plan works best for you. Questions? Give us a call at 631-864-3688 to stay current.