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Borrowers Eligible for 60-Day Reprieve from Student Loan Payments

Anyone paying back federal student loan debt can request a 60-day pause due to disruptions caused by the novel coronavirus pandemic.

The policy – announced by the U.S. Department of Education Friday – is aimed at providing relief to millions of college student loan borrowers during this time of uncertainty in Americans’ jobs and economic lives.

The suspension of loan payments does not wipe out debt.  Borrowers have to request the delay, referred to as “forbearance,” from their lender.

“Though falling short of CFA’s ultimate goal of debt-free higher education and the level economic stimulus that this crisis demands, this move by the Department Education has the potential to put significant money in our faculty’s hands when they need it most,” said Jennifer Eagan, CFA Political Action and Legislative Chair and professor at Cal State East Bay. “I urge CFA members who are carrying student debt to contact their loan providers to request the forbearance to delay their payments.”  

“I also hope that people will follow further developments on student debt relief during this crisis by following the organization Student Debt Crisis, which is advocating for and tracking proposals,” Eagan added.

Student loan debt affects 4 million Californians who carry an estimated $1.41 billion in debt.  

During the 60-day pause, interest will also be waived, dating back to March 13.  The Department left open the possibility of extending the two-month delay in payments.

 

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