The Cares act
COVID led to a federal state of emergency, and the CARES Act passed in the Senate. So what does this mean for your student loans?
The CARES Act basically says that not only there is no accrued interest on your loans, but also that no payments are due until September 30th.
Keep in mind this only applies to federal loans, NOT private loans. If you have private loans and/or refinanced, you're still on the hook for payments.
Under the CARES Act, payments on federal loans are NOT due until Sept 30th. Plus, interest does not accrue!
You're getting a 0% interest rate
This is supposed to be added automatically.
Which is the same thing as to say that you must get on the phone with your loan provider(s) and make sure it actually gets added to your account.
If you made any payments between March 13th (when the bill passed) and now, you're also eligible to get your payment back.
But I've refinanced my loans!
If you refinanced your loans and/or only have private loans, the CARES Act doesn't apply to you.
Your interest rate is the same (unless you opted for a variable rate) and you're expected to make payments. If you're experiencing financial hardship, you can contact your loan provider(s) to see how they can help you.
Just make sure to make your research before calling. The people you'll be talking to are following a script and have the company's interests in mind, not yours. Plus, most of the time they simply don't have the knowledge to help you. Unfortunately, it's the reality we all have to deal with.
Refinance your loans again
If you've already refinanced your loans in the past, it's time to do it again!
Interest rates are very low and chances are you'll be saving thousands of dollars by refinancing and locking in a lower rate! And on top of that, you can also end up with better terms, such as better forbearance program if you're in need of it.
Interest rates are extremely low, and if you're not benefiting from the CARES Act, chances are you'll lock in a lower interest rate!
Go ahead and check multiple loan servicers, see what rates and terms they're offering and see if any are better than what you have now! Good luck!
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