Law Briefs

CARES Act and Student Loans

An update on federal loans from the Santa Clara Law Admissions and Financial Aid Office, as of March 31, 2020.

Congress has approved a six-month suspension of payments and a corresponding suspension of interest accrual for all Federal Direct Loans and FFELP loans owned by the Secretary of Education. In addition, for borrowers in a 10-year or income-driven plan with hopes of benefiting under the Federal Public Service Loan Forgiveness Program, the six months of suspended payments will toll towards your 120 payments. There are other provisions on collections actions. Your student loan servicers should be contacting you soon. 

Read more on the Department of Education website.