So there has been a lot of activity over the past few days in Washington DC attempting to bring relief for the American people.
On the issue of student loans, according to Forbes, the President signed an executive order suspending student loan payments through the end of the year (December 31, 2020), and making your existing student loans 0% interest for that period of time.
While this seems like great news for those saddled with student loan debt there are some caveats.
First, there is some legal question about the extent to which executive orders are legal and unless Congress comes up with an interim solution that the President is willing to sign, there is a very good chance that this executive order will be challenged in the courts.
That means that you need to go to your student loan provider directly and verify any changes to your current repayment plan. Whatever you do, make sure that you do not go into default.
Your student loan provider will have the most up to date information on how they are affected by the actions in Congress and from the President. Usually they have a web portal with good information on your account and notifications on how they plan to treat your repayment. You should plan on checking that web site at least monthly.
For those of you lucky enough to have a steady job, consider paying during the 0% interest phase as each dollar paid will be directly applied to interest.
If you have lost work, then take this opportunity to reach out to your student loan provider to see what “income based repayment plans” they have available.
Things in this area are changing rapidly so the worst thing that you can do is rely upon old information. Stay on top of the latest developments by going directly to your student loan provider because notwithstanding what might be reported in the news, your loan provider is the best source of information on your loan.