Education
Those who have borrowed federal student loans have received another extension on the repayment from the U.S. Department of Education.
The payment pause has been extended through May 1 and takes effect for all qualifying borrowers, with no opt-in needed. In fact, if you are contacted by someone who tells you he or she can help you sign up for this benefit, it is a scam.
Understanding key details of this relief program is important for all borrowers. Here’s a summary of the latest program relief details some people may be missing:
The temporary payment relief is extended to borrowers with qualifying federal student loans. Some federal loans (Family Federal Education Loan, Perkins Loans, etc.) don’t qualify. Contact your federal loan servicer (www.studentaid.gov) to find out if your loans are eligible.
If your loans qualify, the U.S. Department of Education has automatically switched the status of your loans to “administrative forbearance,” and no payments are required until May 1. If you previously set up automatic payments, check to see if any payments have been processed since March 13, 2020. If so, it is possible to get a refund.
If you have defaulted on any federal student loans, the U.S. Department of Education has paused collection calls and billing…
