The site says something completely different. Can you really to have student loan forgiveness?
Here’s what you need to know.
Student loan forgiveness
The CARES Act – the legislation of Congress that includes the $ 2,000 billion coronavirus stimulus package – offers multiple benefits to your personal loan, including assistance to manage your money due to the coronavirus emergency. Among other advantages, the CARES law provides until September 30, 2020:
Some borrowers have asked about the new announcement regarding suspension of all federal student loan payments until September 30, 2020. Specifically, they requested if it’s a good idea to stop paying your federal student loans, especially if you are looking for a utility loan discount. If you want to receive public service loan discount for your federal student loans, you have to make 120 monthly payments. Given this requirement, you may be wondering what happens to your student loan payments if you decide to suspend your federal student loan payments for up to 6 months. The last thing borrowers want to do is do an error and be rejected for a student loan forgiveness.
Here is a typical situation that has reoccurred several times over the past few days:
- You visit the website Department of Education or contact your preferred student loan manager.
- We tell you something like this: “Listen, if your student loans are in arrears or you miss payments, you’re out of luck. No payment? Then, no forgiveness.
- Of course, you think: “Well, I have to make these student loan payments. Why do I hear that I can ignore them? Who gave this bad advice? “
And you would be wrong.
It seems counterintuitive. It seems hard to believe. It seems illogical. However, what you have read on this website or heard from your student loan officer is not correct.
Here is the truth: Any Federal Student Loan Payment You Skip By September 30, 2020 will count for the 120 required payments. This provision is included in the CARES law.
So why the disinformation?
Apparently, information travels slowly. Some websites have apparently not been updated. Some representatives of the student loan services clients were apparently not informed. Despite this, the CARES Act specifically treats non-payment of federal student loans until September 30, 2020 as “payments” for the purposes of calculating the 120 monthly payments. This unique exception will not treat non-payment as regular forbearance. If you contact your student loan manager and we say it differently, it’s certainly frustrating. However, the corrected information will be available soon. This new change even has a ‘Secret’ Way To Get More Student Loan Cancellations.
President Donald Trump has requested the end of the civil service loan forgiveness program in his annual budget in favor of a simplified income-based repayment plan which would offer the same student loan discount plan for undergraduate borrowers, for example. U.S. Education Secretary Betsy DeVos explained why she thinks it’s a good idea to end this student loan forgiveness program. However, Congress has not finished public service loan discount, the program is therefore still active.
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