Student Loan Forbearance In The Coronavirus (COVID-19) Stimulus: What You Need To Know

President Donald Trump and the U.S. Department of Education previously announced student loan relief in response to widespread economic hardship due to the coronavirus (COVID-19) pandemic. Now, Congress’ $2 trillion stimulus package is expected to expand that relief.

Under the stimulus package passed by the Senate on late Wednesday, federal student loans will automatically have their interest rates set to 0% for a period for six months. Additionally, borrowers do not have to make payments during that six-month period.

Here’s what you need to know.

The Six-Month Suspension Of Payments Will Be Automatic

Last week, The Department of Education’s guidance directed borrowers to contact their student loan servicers and request forbearance, or a suspension of payments. Now, according to the stimulus package, the expanded six-month payment relief will be automatic.

Borrowers should log on to their student loan servicer’s website to access their account. From there, they should see that there is no payment due. If the system is still showing a payment due, contact the servicer to confirm that a payment is not required. But keep in mind that the company is likely overwhelmed with calls, and it could be difficult to reach.

Until the stimulus package is signed into law, borrowers should tread carefully before deciding to stop making payments. It could be wise to contact federal student loan servicers directly to confirm they are putting the government’s guidance into action, or to check information posted to their websites.