Federal student loan payments will be suspended for six months as a part of the coronavirus stimulus package signed into law on Friday by President Donald Trump.
For these six months, loans will not accrue interest or affect the borrower’s credit score if the borrower opts to not pay their loans during this time until Sep. 30, 2020. Borrowers will still have to pay back their federal loans, but they won’t be penalized for paying them late.
Borrowers do still have the option of paying off their loans on their normal schedules.
Interest will be set to 0% on defaulted and non-defaulted Direct Loans, defaulted and non-defaulted FFEL Program loans and Federal Perkins Loans, according to the US Department of Education. Borrowers should call their lender to see if this 0% interest rate applies to their loans.
Private lenders, which made up 12% of student loans during the 2018-2019 academic year according to the College Board, will not be required to suspend loan payments from borrowers.
The suspension of these loans will take place immediately, according to the Department of Education.