Section 3513 of the COVID-19 Pandemic Education Relief Act of 2020 (Title III, Part IV, Subtitle B – Education Provisions) provides temporary relief for federal student loan borrowers. In general, the student loan payments have been suspended through September 30, 2020.
During this suspension period:
- No interest will be accrued
- For purposes of reporting information about the loan to consumer reporting agencies, any payment that has been suspended is treated as if it were a regularly scheduled payment made by the borrower
- All involuntary collections related to the loan will be suspended (i.e. wage garnishments, reduction of tax refunds, etc.)
Borrowers will be notified by the Secretary of Education of the details related to these actions taken, including when payments will resume.
To review other provisions from the CARES Act, click here.