CARES Act Relief Extended Until January 31, 2021
On December 4th, the Department of Education extended the deadline for the student loan relief program established under the CARES Act to January 31, 2021, giving America’s 42 million borrowers an extra month to prepare for when payments resume on February 1st.
The majority of these borrowers—more than 37 million people—haven’t made a payment on their federal loans in months. With the unemployment rate still hovering just below 7%, resuming payments will be challenging for many.
Now is the Time to Review Your Student Debt
Regardless of your employment status, now is the time to make sure you understand what your payment obligations will be when the relief program ends. Knowing how much you will owe and when your first payment will be due is the first step towards making sure you’re ready.
If you haven’t looked at your accounts in months, take this time to log back in and reacquaint yourself with your loan obligations. An IonTuition account can be really useful here, as it allows you to see all of your student debt aggregated in one spot, and can let you reduce your payments to accommodate any financial hardships you might be experiencing—or increase your payments to shorten the life of your loan.
You Can Revise Your Current Repayment Plan
If you are unemployed, or if your income has been reduced, there are a number of federal and administrative programs to help you, such as deferment, forbearance, consolidation, or an income-based repayment plan. Your IonTuition concierge advisor can help you navigate these programs and determine which best fits your individual circumstances.
Loan forgiveness is a hot topic right now in Washington, but meaningful changes will most likely have to come through Congress, where they will face an uphill battle. In the meantime, the smartest strategy is the one you develop before payments are due again.
Contact your IonTuition concierge advisor today to make sure you’re ready because February will be here before you know it.