Included in the Stimulus bill is relief for borrowers of certain types of student loans — they’ll see their interest frozen and payments suspended through at least Sept. 30.
- Know which loans are eligible for suspension
Only loans held by the U.S. Department of Education are eligible for the proposed suspension.
Check with your servicer at StudentAid.gov to find out whether your federal loan is one held by the Education Department or another entity.
If you have loans serviced by a private provider, you may still have options.
Get in contact with your private student loan servicer, if you’re struggling, and determine if there’s something you can do to work it out, Sometimes, they can make some type of payment plan, some type of accommodation, but they are not covered by this bill.
- Know how your loan and balance will be affected
If your loans are eligible for a pause, keep in mind that your balance isn’t going anywhere, and although your interest won’t go up, you could be paying for a longer period of time.