WASHINGTON (WIAT) — In the wake of the coronavirus, the U.S. Department of Education has announced it will waive student loan payments for at least the next 60 days.
In a statement released Friday, U.S. Secretary of State Betsy DeVos announced that the Department of Education would be providing loan relief to millions of borrowers, where they will have interest rates of 0% for at least 60 days. The borrowers will also have the option to suspend their payments for the two-month period if they want.
“These are anxious times, particularly for students and families whose educations, careers, and lives have been disrupted,” DeVos said in a written statement. “Right now, everyone should be focused on staying safe and healthy, not worrying about their student loan balance growing. I commend President Trump for his quick action on this issue, and I hope it provides meaningful help and peace of mind to those in need.”
DeVos has also authorized an automatic suspension of payments for any borrower who is more than 31 days late on payments as of March 13.
“Some borrowers may want to continue making payments, like those seeking Public Service Loan Forgiveness (PSLF) or those enrolled in a repayment plan with a manageable monthly payment,” the press release read. “For borrowers continuing to make payments, the full amount of their payment will be applied to the principal amount of their loan once all interest accrued prior to the president’s March 13 announcement is paid. The Department will work closely with Congress to ensure all student borrowers, including those in income-driven repayment plans, receive needed support during this emergency.”