Talk about adding insult to injury: You lost your job in the pandemic, but you still have to pay back those student loans that you borrowed to get a good job. It doesn’t seem fair.
Fortunately, there may be some relief. If you have a qualifying federal student loan, all payments are deferred until September 30, 2020. Please contact your loan servicer to see if you qualify – eligibility may depend upon who owns your student loans (the federal government sells some loans to private lenders, and this may affect eligibility), the type of federal loan, and whether you were current on your loan payments as of March 13, 2020.
In addition, you MUST contact your loan servicer and let them know you intend to pause payments. The CARES Act provides additional benefits for borrowers and grant recipients as well so check with your loan servicer or school administration, along with Federal Student Aid for more information.
This blog is intended to just highlight the various rescue programs that may be available to you and is not intended to substitute for professional tax or legal advice. The McCarthy Law Firm is not a loan servicer or accounting firm. Additionally, there are detailed regulations concerning each person’s eligibility and terms of repayment. Please check with your tax advisor and/or your loan servicer regarding your specific situation.
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