COVID-19 Student Loan Updates:
Effective March 20, 2020, all borrowers with federally held student loans will automatically have their interest rates set to 0% for at least 60 days.
- Each borrower has the option to suspend their payments for at least 60 days.
- Next Step: To request the forbearance, contact your servicer online or by phone.
- Learn more here.
The Department of Education has stopped all wage garnishment and withholdings from federal income tax refunds, Social Security payments, or other federal payments for default borrowers as of March 13th and for a period of at least 60 days.
- Next Step: If you are having your wages garnished for federal student loan default, it is the responsibility of your employer to stop the garnishment. Follow-up with them directly.
- Learn more here.
Additionally, if you have had a reduction in income, you may want to consider an income-driven repayment plan.
- Next Step: Contact your servicer to see if there is a payment plan with an affordable payment plan with your new income.
If you have additional questions about your student loans being impacted by COVID-19, visit this FAQ page from the CFPB.
“There is no expectation that the servicer will act in the interest of the consumers,” – Navient, the nation’s largest student loan servicer, in response to a lawsuit that shows they mislead consumers.
Concerned about student loan debt? We are here to help.
- We created the DIY Guide below so you have the information you need to manage the situation on your own.
- However, if you need help from a certified student loan counselor, click on the link below for information about counseling. The fee is $75 to $150 and is based on income.
For our DIY guide on managing student loan debt, click here.
For personalized help, click here for information on our Student Loan Debt Counseling Program.