Get all the latest news on coronavirus and more delivered daily to your inbox. Sign up here.
But under the Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act, the $2 trillion stimulus package that gives economic support to those financially crippled during the pandemic, student loan borrowers are entitled to a number of relief benefits.
FEDERAL STUDENT LOANS WILL BE THE CHEAPEST EVER THIS SCHOOL YEAR
The federal government is offering those with federal student loans an automatic six-month forbearance where payments do not have to be paid, so consumers can allocate funding to basic needs like food and living costs. What's more, no interest will accrue unlike in normal circumstances where borrowers must pay interest while in forbearance.
For those who do have auto payments scheduled, payments will be suspended. And while suspended payments are automatic, those who wish to continue paying can do so. Some private lenders are also offering relief programs.
The federal government has also mandated that debt collectors cease collection from loan borrowers until Sept. 30.