On August 8 President Trump issued a memo ordering the Secretary of Education to extend the administrative forbearance of federal student loans through … Student loan borrowers with the Federal Family Education Loan (FFEL) Program or Federal Perkins loans not owned by the Education Department don’t have access to the automatic forbearance. Pushing back your student loan repayment deadline could make your monthly bills more affordable. While a one-month extension wasn’t the Christmas miracle many were hoping for, it gives lawmakers time to agree on the next stimulus package or for the new administration to pass loan forgiveness. Last week, U.S. Secretary of Education Betsy DeVos announced the extension of the federal student loan administrative forbearance period through January 31, 2021. Federal loans typically have a grace period of six months after you leave school. Looks like a punt to the next administration. Education secretary Betsy DeVos announced the extension … The Department continues to update ed.gov/coronavirus with information on COVID-19 for students, parents, educators, and local leaders. so far I'm hearing NO student loan waiver extension, NO loan forgiveness, a significantly reduced FAFSA application in the future, more funding for colleges to assist students, and a cancellation of the 150% subsidy rule that turns subsidized stafford loans into unsubsidized stafford loans if you take too long to complete your degree. In August, President Donald Trump signed a presidential memorandum extending the student loan relief through Dec. 31st. Some speculate Biden will forgive at least $10,000 of student loans next year, but you should still plan for loan payments to resume in February. Most recently on Dec. 4, the U.S. Department of Education announced an extension of the federal student loan administrative forbearance … Most student loans will qualify for the coronavirus forbearance, but some won’t, said Elaine Griffin Rubin, senior contributor and communications specialist at Edvisors. In addition, loan interest rates will remain at 0%. "The coronavirus pandemic has presented challenges for many students and borrowers, and this temporary pause in payments will help those who have been impacted," said Secretary DeVos. Federal student loan borrowers will not be expected to make payments through January of next year, though they will continue […] ELMIRA, N.Y. (WETM) – Officials have suspended federal student loan payments through January 31st. But just as important is your best-case scenario budget. I’ve been furloughed two-three days a week equating to up to 45% of my pay through October and I’m trying to get my finances in order to start paying up on my loans when the time comes. The Department of Education is expected to issue additional guidance in the coming days on the details of the memorandum. But by December 31st, that is likely to change — as federal pandemic relief expires on that day and student loan forbearance with it. Since we have a long way to go to get back to the employment levels we had before the COVID crisis, I think forbearance plans will be extended fully in 2021. If Biden's stimulus plans make it through Congress, borrowers may be eligible for $10,000 of forgiveness, and some politicians are advocating for as much as $50,000. President-elect Joe Biden has talked extensively about more economic relief for the millions of Americans struggling as a result of the pandemic. Don't wait to reach out and ask for help if you need it. Upon President Trump's March 13, 2020, declaration of a national emergency resulting from the COVID-19 pandemic, Secretary DeVos immediately used her authority under the HEROES Act of 2003 to set all federal student loan interest rates to zero and automatically enter borrowers into administrative forbearance, allowing them to defer payments without financial penalty. Of course, 2021 plans are mere speculation until we know the outcome of the Georgia runoff elections and Biden assumes office on Inauguration Day. WASHINGTON – U.S. Secretary of Education Betsy DeVos announced today the extension of the federal student loan administrative forbearance period, the pause in interest accrual, and the suspension of collections activity through January 31, 2021. Federal student loans automatically go on a 10-year repayment plan, but they don’t have to stay there. Political Support Fades – It isn’t likely, but if the student loan relief becomes controversial, it could come to an abrupt end. In response to the COVID-19 pandemic, U.S. Secretary of Education Betsy DeVos announced an extension of the forbearance period and a pause in interest accrual on federal student loans Friday. On Friday, Secretary of Education Betsy DeVos announced an extension of the student loan federal forbearance period through Jan. 31, 2021. Don't wait to reach out and ask for help if you need it. Before getting too optimistic, make a "best case" and "worst case" scenario budget so that you have a plan for your money, no matter what happens. For now, the forbearance extension is to begin Oct. 1 and run through the end of the year, barring any legal challenge. On Monday, Congress approved a second coronavirus relief package that includes $600 stimulus checks for many individuals — but no additional student loan forbearance for borrowers. The Deferment Extension Applies to a Majority of Student Loan Types. The additional 30 days "allows Congress to do its job and determine what measures it believes are necessary and appropriate," said Secretary DeVos in the announcement. Student loan forbearance from the federal government during COVID-19 has meant borrowers don’t need to make payments until Dec. 31 and, perhaps most importantly, has stopped interest on the loans. Due to the coronavirus pandemic, the government announced earlier this year that it was offering an automatic halt for repayment on all federally-held student loans — initially until Sept. 30, 2020, but later extended until Dec. 31, 2020. But look before you leap: A CFP suggests you do these 2 things before you apply. While this extension was not necessarily the solution that millions of Americans were hoping for, it gives at least 41 million federal student loan borrowers whose payments were paused under the CARES Act breathing room while Congress hopefully hammers out further stimulus measures. However, an extension via executive order is the most likely outcome.) Federally held #studentloans officially suspended until 2021, interest set to … For the past nine months, people saddled with student loan debt have been able to stop paying down their student loans, interest-free. Extension of Student Loan Payment Relief. "The added time also allows Congress to do its job and determine what measures it believes are necessary and appropriate. In the short-term, think about how you might spend the money you ordinarily use for your monthly loan payment if the freeze continues. Millions of student loan borrowers might be required to resume federal student loan payments on February 1st. Non-payments will continue to count toward the number of payments required under an income-driven repayment plan, a loan rehabilitation agreement, or the Public Service Loan Forgiveness program. Mortgage forbearance and foreclosure. Federal student loan borrowers who were worried about payments resuming in January can relax for the time being. I’ve been trying to read and find information regarding if there will even be a possibility for an extension to the current forbearance in student loans. The announcement from the Education Department officially extends the relief through Jan. 31, and it helps to avoid a chaotic situation in which borrowers may have been required to make one payment in January before then being put back into forbearance.