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Student Loans and Federal Stimulus Package Updates

The student loan details of the $2 trillion stimulus package have been released and could be game-changing. The pertinent information is below, along with general recommendations provided by Doctors Without Quarters (DWOQ):

  • Interest AND payments are being suspended on all federal student loans (not FFEL, unfortunately) for SIX MONTHS, through Sept 30th.

  • The suspension of payments and halting of interest accrual will be automatic; There is nothing that you need to do.

  • Those enrolled in Income-Driven plans will be able to count this six month period towards available loan forgiveness. This includes PSLF, assuming you continue to meet the employment requirements.  Anyone pursuing PSLF is advised to simply enjoy the payment holiday, as making unnecessary payments would only increase the cost of forgiveness.

  • If you’re in Standard, Extended or Consolidated repayment, your payments will also be halted. You may still make elective payments which will go 100% to principal. 

  • FFEL loans and private loans (including those that have been refinanced) do NOT qualify for the stimulus.

The stimulus still needs to pass the House, but it is expected to do so, and President Trump has already indicated he will sign it.

If you are unsure about the structure of your loan portfolio, your payment strategy, or the best course of action during this time, consider contacting DWOQ for a comprehensive student loan consultation. Click HERE to learn more.

To receive a 15% discount, use code “IWC15”