Federal Student Loan Relief

Are you or someone you know currently making federal student loan payments? In light of the

COVID-19 pandemic, some welcome relief has been implemented for federal student loan payments.  

Thanks to the recent passage of the CARES Act, the U.S. Department of Education has allowed

you to temporarily halt your federal student loan payments from March 13, 2020 until September 30, 2020.¹

What should you do next?

Currently, no action is necessary. As part of this relief initiative, all federal student loans will be

placed in an administrative forbearance and automatic payments will be paused from March 13

to September 30, 2020.

What about the interest?

Good news! During this same period, interest rates are being set to 0% on the following types

of federal student loans:²

• Defaulted and non-defaulted Direct Loans
• Defaulted and non-defaulted FFEL Program loans
• Federal Perkins Loans

What if I want to keep making payments?

It is important to keep in mind that payments are still being accepted during this time period,

but they won’t be automatic or required. Depending on your situation and goals, continuing to

pay down your federal student loans may make sense, even during this challenging time.

If you would like to discuss a strategy for your federal loan payments, or have any other

financial related questions, please contact a Kaizen Advisor