In the wake of the COVID-19 pandemic, the government has suspended all federal student loan payments through September 30, 2020. Here’s what you need to know:
- No interest will accrue on your federal student loans through Sept. 30, 2020.
- Your federal student loan balance doesn’t change unless you make payments, meaning the government is not paying your loans during this time
- Your monthly federal loan payment amount does not change. So payments you do make go toward paying off your existing federal student loan balance.
- If you do not pay your federal student loans through Sept. 30, 2020, you will not incur penalties or late fees. Importantly, you will also not disqualify yourself from the federal student loan forgiveness program if you do not make any payments.
- Similarly, student loan debt collection has been suspended through Sept. 30, 2020, so wages, tax refunds and Social Security benefits will not be garnished during that time
- This only applies to federal student loans and not private or Federal Family Education Loans (FFEL)