Student Debt During Coronavirus
Many young people are strapped with huge student debt. The coronavirus has now made a bad situation worst. Very low job prospects for the near future. The pressure from the student loan debt is overwhelming. A new federal law, the Coronavirus Aid, Relief, and Economic Security (CARES) Act, provides automatic suspension of principal and interest payments on federally-held student loans through September 30, 2020.
If you are experiencing hardship or a loss of income and can’t afford your payment for your non-federally held loans, you should contact your servicer as soon as possible. They can discuss options with you. For all other matters, see if you can find out information on your servicer’s website, then call your servicer if you need additional help.
If someone contacts you to pay a fee to suspend your payments
This is a scam. The federal government will not ask for a fee to suspend your payments, and you do not need to pay someone to help with your student loans. There is no action required of you. If someone asks for money to suspend your payments, you should report them to the FTC’s complaint assistant.
This information is provided by the Consumer Financial Protection Bureau. 401k Assist, LLC is a CFPB education practitioner helping people become better consumers.