COVID-19 Relief for Student Loan Borrowers

Last Updated: Friday, April 3, 2020

As we navigate the challenges posed by the spread of COVID-19, we remain committed to supporting borrowers.

We are working closely with the Department of Education to enact the relief efforts that have been announced through the CARES Act. No action is required on your part at this time. Your account should currently reflect the updated 0% interest rate. Additionally, you will receive a notification once the forbearance benefit has been applied to your account no later than April 10.

0% Interest for Student Loans

  • The interest rate on all federally held student loans serviced by FedLoan Servicing will temporarily be reduced to 0% until September 30, 2020.
  • FedLoan Servicing will automatically adjust accounts so that interest doesn’t accrue (i.e., accumulate). The account adjustment will be effective March 13, 2020.
  • This 0% interest rate change will be applied to all federally held loans in any status (in school, in grace, in repayment, in deferment/forbearance, etc.).

Temporary Suspension of Payments

  • All borrowers will automatically be placed on an administrative forbearance which will temporarily suspend monthly payments.
  • The administrative forbearance will last from March 13, 2020, through Sept. 30, 2020.
  • A borrower can request that this administrative forbearance be removed at any time. If the forbearance is removed, required payments will resume.

Payments (including Direct Debit)

  • Direct Debit payments are automatically suspended during the administrative forbearance.
  • Any payments (Direct Debit or otherwise) processed between March 13, 2020, and Sept. 30, 2020, can be refunded; refund requests can be made by contacting us.
  • Borrowers still have the option to make manual payments (i.e., via Account Access or mobile app) on their loans to make progress toward reducing their balance. Payments can be the full amount or a partial amount.

NOTE: If payments are made during the period of 0% interest (March 13, 2020, through Sept. 30, 2020), the full amount of your payments will be applied to principal once all the interest that accrued prior to March 13 is paid.

Public Service Loan Forgiveness (PSLF) & Income-Driven Repayment (IDR)

  • Borrowers with a Direct Loan, whom are on a qualifying repayment plan prior to the suspension, and work full-time for a qualifying employer during the suspension, will receive credit toward PSLF for the period of suspension as though on-time monthly payments were made.
  • Borrowers currently on an IDR plan will have suspended payments count toward IDR forgiveness.

Federal Student Aid’s coronavirus disease 2019 (COVID-19) information page is located at StudentAid.gov/coronavirus. The page includes information about relief to student loan borrowers, including those who have defaulted on their federal student loans. Please visit the page regularly for updates.