Still Have a Student Loan? Some Relief

William Blanken - 239 Views

Federal Student Loan Relief

How does it work? What should you do?

 

Provided by William Edward Blanken Jr

 

Are you or someone you know currently making federal student loan payments? Considering the COVID-19 pandemic, some welcome relief may be on the way.

 

Thanks to the recent passage of the CARES Act, the U.S. Department of Education will allow you to temporarily halt your federal student loan payments from March 13, 2020 until September 30, 2020.1

 

What should you do next?

Currently, no action is necessary. As part of this relief initiative, all federal student loans will be placed in an administrative forbearance and automatic payments will be paused from March 13 to September 30, 2020.

 

 

What about the interest?

Good news! During this same time period, interest rates are being set to 0% on the following types of federal student loans:2

 

  • Defaulted and non-defaulted Direct Loans
  • Defaulted and non-defaulted FFEL Program loans
  • Federal Perkins Loans

 

What if I want to keep making payments?

It might be important to keep in mind that payments are still being accepted during this time period, but they will not be automatic or required. Depending on your situation and goals, continuing to pay down your federal student loans may make sense, even during this challenging time.

 

Contact Blanken Management if you would like more information.

William Edward Blanken Jr may be reached at 850-660-1164 or william.blanken@blankenmanagement.com

www.blankenmanagement.com

 

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

 

Blanken Management Disclosure

 

The investment advice provided along with the strategies suggested by Blanken Management will vary depending on each client’s specific financial situation and goals. There are risks involved while investing in securities. Considering the risks, you should fully understand the nature of the contractual relationship into which you are entering and the extent of your exposure to risk. Certain investing strategies may not be suitable for many members of the public. You should carefully consider whether the strategies employed will be appropriate for you considering your experience objectives, financial resources and other relevant circumstances.

 

Citations.

1 – Ed.gov, 2020

2 – Studentaid.gov, 2020


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