IMPORTANT Update on Student Loans and Stimulus Package
Attention: Share this important update on student loans and stimulus package with ANYONE who has student loan debt: yourself, family, friends, etc.
The student loan details of the $2 trillion stimulus package have been released and they are game-changing:
- Interest AND payments are being suspended on all federal student loans (not FFEL, unfortunately) for SIX MONTHS, now through Sept 30th.
- The suspension of payments and halting of interest accrual will be backdated to 3/13 and automatic; nothing a borrower needs to do.
- Those enrolled in Income-Driven plans will be able to count this six month period towards available loan forgiveness… including PSLF, assuming they are meeting the employment requirements.
- Anyone pursuing PSLF is advised to simply enjoy the payment holiday, as making unnecessary payments would only increase the cost of forgiveness.
- We’ll need to get some guidance still from the Dept of Ed on how this will work for graduating students, so please stay tuned for updates.
- FFEL loans and private loans (including those that have been refinanced) do NOT qualify for the stimulus. I am in discussions with our partners about possible matching benefits.
The stimulus still needs to pass the House, but it is expected to do so, and Trump has already indicated he will sign it.
Please keep an eye out for our continued updates. Thanks, and stay healthy and sane during this crazy time!
’til DEBT do us part,
The DWOQ Team
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