Bill Suspends Many Student Loan Payments For At Least 60 Days Due to COVID-19

STATEWIDE -- In the best of times student loans can be an annoyance. But, you signed the dotted line and have to pay them back. In the time of the coronavirus, the federal government has made provision for your loans not to hurt you, says INvestEd, an Indy non-profit that helps people answer questions about money for college.

According to INvestEd’s Bill Wozniak, three things Hoosiers need to know about the Federal Student Loan Suspension include:

Students do not have to take an action to receive a federal student loan interest waiver.

The 60-day waiver includes a majority of federal student loans, including federal direct loans, federal PLUS loans, consolidation loans, and some federal Perkins loans and FFELP loans.

The waiver does apply to delinquent federal student loans.

"Federal student loan payments can now be suspended right now for the next 60 days. But, if the billgets signed that would go through the end of September," said Wozniak. "The important thing here is to work with your servicers. If you have questions get a hold of your servicer."

He said if you are on time with payments you will have to contact that servicer to suspend payments. If you are delinquent they will automatically be suspended, at least that is the guidance his office has gotten from the federal government.

"You can continue to make payments and because of the interest waiver you could start to pay down a little more of the principle. But, you don't have to make those payments," said Wozniak. "Because there's no interest rate being charged, if somebody chooses to go the route of not making payments they're not going to get behind."

Wozniak said you can get questions about financial aid, student loans and more answered for free by phone at (317) 715-9007 or at www.investedindiana.org. INvestEd is a non-profit.