On March 27, 2020, The $2 Trillion Stimulus Package known as The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted.
The Stimulus Package impacts many Americans, including those with student loan debt. Under the CARES Act, all student loan borrowers with eligible federal student loans, will have their monthly payment obligation automatically suspended through September 30, 2021.
This means these borrowers may take a break from making their required monthly payments, without incurring interest or penalties until September 30, 2020.
Borrowers do not need to call or request this suspension, as it is automatic. Beginning Aug. 1, 2021, the U.S. Department of Education will begin notifying borrowers when normal payment obligations will resume.
This sounds pretty helpful if you’ve been hit economically due to COVID-19. Here’s what you need to know:
Which loans does the CARES Act apply to?
- Direct Subsidized Loans
- Direct Unsubsidized Loans
- Direct PLUS Loans
- Direct Consolidation Loans
- Federal Family Education Loan Program (FFELP) transferred to the Department of Education
The following loans are not eligible under the CARES Act:
- Federal Perkins Loans managed by universities.
- Federal Family Education Loan Program (FFELP) Loans managed by banks and other financial institutions.
- Private Loans
Will this affect progress toward loan forgiveness?
- Not negatively. Under the CARES Act, suspended payments will count towards PSLF and TLFP.
Reduce your monthly payments
- If you can still make payments, but need to lower your monthly payment, consider enrolling in an income-driven repayment plan. These plans will cap your required monthly repayment in proportion to your income. And, depending on your financial situation, you may pay as little as $0. Use our Discover Tool to find an income-driven repayment plan that is right for you.
- Help spread the word by sharing this with everyone you know that could benefit from paused or lower student loan payments. Stay Chipper and healthy!
Use Chipper for Lower Payments
Chipper can help you find a student loan repayment plan that actually fits into your budget. You simply fill out your information and link your student loan account for us to generate your options in seconds. We help the average student loan borrower save over $300 a month off their student loan monthly payment. Lowering your monthly payment plan can game changing for your personal finance and can be done in minutes! Sign up for Chipper today to get on track with your student loans.
Use Chipper for The Best Path to Forgiveness
Finding your path to student loan forgiveness is easier than ever before. Chipper helps members find better Income-Driven Repayment (IDR) plans every day. Once enrolled in an eligible repayment plan, we can help you explore your forgiveness options and understand your path towards forgiveness. Sign up with Chipper today and get on track with your student loans.
Use Chipper for Round-Ups
Paying off your student loans doesn’t have to be a long and painful journey. Round-Ups are a way to directly pay off your loans with your everyday spending! By tracking your linked spending account(s), we will calculate the rounded up amount from each transaction in a week (IE spending $4.28 would add $0.72 to the weekly amount). We then initiate a payment towards your student loan for the weekly amount. Get chipping away on your student loans with Chipper today.
Use Chipper for Public Service Loan Forgiveness (PSLF)
The Public Service Loan Forgiveness (PSLF) program was created to provide relief to borrowers aiding the public sector. Unfortunately, 30% of applicants are denied due to incorrect paperwork. We can help! Chipper was created to solve this issue by assisting borrowers in understanding their options as well as allowing forgiveness eligible users enroll into the best forgiveness program available. Sign up for Chipper today to see your student loan forgiveness options and get the forgiveness you deserve.
Use Chipper for Teacher Loan Forgiveness (TLF)
The Teacher Loan Forgiveness (TLF) program was created to enable teachers working in Title 1 schools to receive student loan forgiveness of up to $17,500 (depending on their teaching subject). Chipper has helped teachers from all over the country qualify for TLF program and can help you get the forgiveness you deserve today. Find out if you qualify for forgiveness in minutes with our employer search tool.