Managing Your Student Loans during Covid-19
The whole world is tackling the Covid-19 pandemic while students who borrowed private and federal loans face another problem. With a lot of uncertainty and challenges, the world is facing the harsh realities of the virus. 2019 was at a peak where many student loans were borrowed and now it might be the time to repay it.
However due to the pandemic emergency, there are various repayment options that the government has come up with in order to ease the repayment burden of students.
Here are some ways that you could manage your student loans during the financial crisis.
The Coronavirus Aid, Relief and Economic Security (CARES) Act
The CARES Act is a law that was passed and signed on March 27th, 2020. This act helps in managing the 9 million student loans borrowed. The most important part includes suspension of loan for six months until September 30th, 2020. With waived interest rates, accounts being updated with continuous credit reports help loan repayments. And qualifying for loan forgiveness programs are stated under this. It also includes,
• Direct loan payments with 0%
• Extension of unemployment insurance and increased eligibility to qualify for federal programs.
• Cut down the penalty charged on some retirement funds.
• Increased 401,000 loan amount
• Providing coronavirus testing and suitable vaccines for patients at no cost
There are many loan servicers who collaborate with the government to work effectively with the uncertainties. The financial information related to student loans are given on the StudentAid.gov/coronavirus to help you clear off loans even during the impact of coronavirus.