On Wednesday, the Senate unanimously passed a $2 trillion stimulus bill to assist Americans affected by the COVID-19 outbreak.
Interest Waiver Extended to Six Months
The government extended the interest waiver from two months to six months. While this waiver will occur automatically for all borrowers, the bill has not been signed into law so it will be several weeks before your federal student loan account is updated to reflect the interest-free period.
Borrowers are also eligible to apply for an interest-free forbearance period for six months. Currently, it’s difficult to call into the federal servicers, so use the IonTuition student loan advisors for priority phone lines. Our advisors will wait on hold for you and call you back when they get through.
Borrowers making consecutive payments to meet loan forgiveness, such as the Public Service Loan Forgiveness or Teacher Forgiveness, can also suspend their payments without losing eligibility.
Employer Student Loan Contributions Receive Tax Incentive
Until the end of the year, employers can provide up to $5,250 towards their employees’ student loans as income-exempt payments. If you’re an employer, please contact us to set up your company’s contribution program today.