No interest rates for Federal Student Loans temporarily –announced in response to COVID-19

No interest rates for Federal Student Loans temporarily –announced in response to COVID-19

by Chhayal on March 25, 2020

Department of Education Press Release March 20, 2020 announced: 

All borrowers with federally held student loans will automatically have their interest rates set to 0% for a period of at least 60 days. In addition, each of these borrowers will have the option to suspend their payments for at least two months to allow them greater flexibility during the national emergency. This will allow borrowers to temporarily stop their payments without worrying about accruing interest. For more detail about the suspension of interest charges and payment forbearance, see this article from NCLC’s Student Loan Borrower Assistance site.

Department of Education, Coronavirus and Forbearance Info for Students, Borrowers, and Parents: includes more detail on the suspension of interest accrual and loan payments, with additional Q & A on other topics relevant to students in school, student loan borrowers, and their parents. 

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