When to Expect Student Loan Relief
The cost of college continues to rise, making it increasingly difficult for students to receive the education they need to succeed. Fortunately, there may be some good news on the horizon when it comes to student loan relief. Here is a look at when you can expect student loan relief.
The federal government offers several forms of financial aid to college students, including loans, grants, and work-study programs. The amount of aid given varies depending on household income, among other factors. Depending on a student’s individualized circumstances, they may qualify for significant student loan relief through federal financial aid programs.
Potential Stimulus Extension
The federal government recently passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which includes several measures to help people during the pandemic. One of these measures is a pause on federal student loan repayment through September 2021. This provides temporary respite for those struggling to make payments, but the relief could potentially end at that time.
Private Loan Refinancing Options
For borrowers who received private loans for college and are having difficulty making payments, there are refinancing options available. Refinancing a loan allows borrowers to secure more favorable terms and terms, such as lower interest rates. This can significantly reduce how much a borrower needs to pay.
There are a variety of options available to those looking for student loan relief. Federal aid and potential stimulus extensions can provide significant financial relief, while private loan refinancing can help borrowers save money in the long run. If you are struggling with student loan payments, it is worth exploring these options to determine which one is best for you.
When will stimulus checks be sent for student loan relief?
The stimulus checks are not directly related to student loan relief. The CARES Act provides special forbearance through September 30, 2020, allowing borrowers to pause their loan payments without penalty or accruing interest. However, the stimulus checks are sent based on the most recent tax returns or other forms of income.
“What relief is available for student loan borrowers during the coronavirus pandemic?”
Car payments on federal student loans may be suspended until September 30, 2020. This suspension of payments is automatic and no action is required from borrowers. Interest will not accrue during this period, and individuals who are unable to make payments won’t have to worry about late fees or damage to their credit scores. Additionally, the Department of Education has offered a forbearance period for borrowers of federal student loans. This forbearance period allows borrowers to suspend payments for up to two months and gives them the ability to request an additional six months of forbearance if needed. Lastly, some private lenders are offering borrower assistance programs to help those affected by the pandemic.