topic Re: Student Loan Payment Relief extension thru December in Student Loans

Student Loan Payment Relief extension thru December

ccquest — Sat, 08 Aug 2020 23:51:17 GMT

Trump signed another executive order today with an extension on the student loan payment relief thru December 31, 2020.

Sec. 2. Extension of Student Loan Payment Relief. (a) In light of the national emergency declared on March 13, 2020, the Secretary of Education shall take action pursuant to applicable law to effectuate appropriate waivers of and modifications to the requirements and conditions of economic hardship deferments described in section 455(f)(2)(D) of the Higher Education Act of 1965, as amended, 20 U.S.C. 1087e(f)(2)(D), and provide such deferments to borrowers as necessary to continue the temporary cessation of payments and the waiver of all interest on student loans held by the Department of Education until December 31, 2020.

Unfortunately, a lot of details are missing such as whether or not payments will still count towards PSLF (important for me!), but still good news for many people.

Re: Student Loan Payment Relief extension thru December

Red1Blue — Sun, 09 Aug 2020 00:18:37 GMT

@ccquest wrote:
Trump signed another executive order today with an extension on the student loan payment relief thru December 31, 2020.

Sec. 2. Extension of Student Loan Payment Relief. (a) In light of the national emergency declared on March 13, 2020, the Secretary of Education shall take action pursuant to applicable law to effectuate appropriate waivers of and modifications to the requirements and conditions of economic hardship deferments described in section 455(f)(2)(D) of the Higher Education Act of 1965, as amended, 20 U.S.C. 1087e(f)(2)(D), and provide such deferments to borrowers as necessary to continue the temporary cessation of payments and the waiver of all interest on student loans held by the Department of Education until December 31, 2020.

Unfortunately, a lot of details are missing such as whether or not payments will still count towards PSLF (important for me!), but still good news for many people.

This is really a good news for many of the students with student loans. Hope my loans will defer till December 31,2020. It will give me time to catch up on other COs and hopefully clean things up and get ready for paying off the student loans.

Re: Student Loan Payment Relief extension thru December

ccquest — Sun, 09 Aug 2020 01:55:13 GMT

That's about the only part guaranteed for federal loans and certainly a good move with what's going on. Just wish the other finer details were included, but I suppose that's to come in the following weeks similar to his original EO.

Re: Student Loan Payment Relief extension thru December

jasonbourne84 — Sun, 09 Aug 2020 19:05:05 GMT

@ccquest wrote:
That's about the only part guaranteed for federal loans and certainly a good move with what's going on. Just wish the other finer details were included, but I suppose that's to come in the following weeks similar to his original EO.

Hard to know for sure. The original order was pursuant to legislative action, not executive order. Hopefully it all sticks though.

Re: Student Loan Payment Relief extension thru December

Red1Blue — Sun, 09 Aug 2020 19:26:36 GMT

@jasonbourne84 wrote:
@ccquest wrote:
That's about the only part guaranteed for federal loans and certainly a good move with what's going on. Just wish the other finer details were included, but I suppose that's to come in the following weeks similar to his original EO.
Hard to know for sure. The original order was pursuant to legislative action, not executive order. Hopefully it all sticks though.

When do you think we might know for sure ? I would love to get interest waived till 12/31/2020. That is savings of about $2000 just interest alone for 4 months.

Re: Student Loan Payment Relief extension thru December

ccquest — Sun, 09 Aug 2020 19:33:28 GMT

Hopefully it forces Congress to settle on something in their negotiations and get things finished up, but probably no real solid timeline for that either.

The thing that also isn't clear is just who this applies to. Like part of it says it's for those facing hardships so it might not be universal this time. Unless it is more interpreted by DOE to be continuing the CARES provisions instead of the original order he had.

Re: Student Loan Payment Relief extension thru December

Cjaysmom — Sun, 16 Aug 2020 18:36:44 GMT

I received a letter (via email) from Navient this morning informing me that my autopay will resume after September 30, 2020. What Trump signed was an order suggesting that the Student loan deferrment be continued to at least December 31. The House of Representatives wanted to extend it for one more year. The Senate, who knows. But it doesn't matter. The Senate has recessed until September.

Re: Student Loan Payment Relief extension thru December

ccquest — Sun, 16 Aug 2020 19:03:02 GMT

It's the only one that he can actually do/postpone though. The others are outside of his jurisdiction alone, Education is not.

As for the recess, hopefully some people are still working behind doors throughout it but who knows.

Re: Student Loan Payment Relief extension thru December

Cjaysmom — Sun, 16 Aug 2020 20:06:47 GMT

@ccquest wrote:
It's the only one that he can actually do/postpone though. The others are outside of his jurisdiction alone, Education is not.

As for the recess, hopefully some people are still working behind doors throughout it but who knows.

I hope there are people working behind closed doors too. There are far too many people that going to impacted negatively if something isn't done soon.

Re: Student Loan Payment Relief extension thru December

dryanaz80 — Mon, 17 Aug 2020 04:35:17 GMT

My federal loans are with Fedloan Servicing and they have posting confirming that payments will be in forbearance with payments not due until 1/2021, as well as interest rates remaining at zero.

It does not appear that the missed payments will count toward PSLF or overall forgiveness if on IDR.

Other biggest concern is making sure that this doesn't reset my number of payments or that any interest will capitalize....my due date still reflects 9/30, but $0.00.

Hope to get more info soon as the payroll tax is supposed to start Sept 1 and AZ has restarted its unemployment benefits...these are all from most recent EOs and memorandums.

Re: Student Loan Payment Relief extension thru December

ccquest — Mon, 17 Aug 2020 12:42:43 GMT

@dryanaz80 wrote:
My federal loans are with Fedloan Servicing and they have posting confirming that payments will be in forbearance with payments not due until 1/2021, as well as interest rates remaining at zero.

It does not appear that the missed payments will count toward PSLF or overall forgiveness if on IDR.

Other biggest concern is making sure that this doesn't reset my number of payments or that any interest will capitalize....my due date still reflects 9/30, but $0.00.

From what I've read elsewhere, Navient has sent out warnings saying that auto-payments will resume in October so I'm sure there's still no clear direction from the Department of Education on what to do. I'm hopeful that we'll get an extension of the CARES provisions, but expecting it'll be more limited with nothing for "everyone" by default and no counting for PSLF. Ya know, prepare for the worst, hope for the best.

As far as resetting number of payments, everything I've seen for PSLF is 120 on time payments. Nothing resets that timer, just sets you further back on the schedule.

Re: Student Loan Payment Relief extension thru December

calyx — Fri, 21 Aug 2020 15:26:00 GMT

I will also be waiting with bated breath on this. The hold on payments has helped immensely with my furlough (still waiting for my PUA approval from June and unemployment, ugh) and my medical bills (surgery, wheee!).

I have been stockpiling a payment for when payments resume, but if it gets pushed out (with the 0%), I might just throw it at my auto loan instead and reevaluate how I want to get everything sorted out.

Re: Student Loan Payment Relief extension thru December

ccquest — Fri, 21 Aug 2020 15:44:57 GMT

Seems like they are starting to have "initial guidance" (my own phrasing) that things will be the same as the current relief. The Student Aid website references it, Navient and Great Lakes have already suggested it will be the same thru 12/31, FAFSA on twitter put out that "administrative forbearance and 0% interest rate have been extended [until Dec 31, 2020".

I've got my fingers crossed! I'll be using the money I've saved from not paying the fed loans to bump my payments on the private ones to $1k and accelerate that end date.

Re: Student Loan Payment Relief extension thru December

jasonbourne84 — Fri, 21 Aug 2020 16:27:08 GMT

So, I've paid $7200 toward my fed student loans (Fed Loan Servicing) during forbearance, and am debating asking them to refund that money so that I can stockpile a paymnet for Jan 1. Has anyone else done this with Fed Loan Servicing yet? And regardless, what are everyone's thoughts on this?

Re: Student Loan Payment Relief extension thru December

calyx — Fri, 21 Aug 2020 20:01:08 GMT

@jasonbourne84 wrote:
So, I've paid $7200 toward my fed student loans (Fed Loan Servicing) during forbearance, and am debating asking them to refund that money so that I can stockpile a paymnet for Jan 1. Has anyone else done this with Fed Loan Servicing yet? And regardless, what are everyone's thoughts on this?

~~I don't have FedLoan, but I can't imagine they have any reason to refund the money. It's money you paid for a debt, so it's legally theirs.~~
I'm wrong wronger-son

If you do it, I'd definitely like to hear more about it!

Re: Student Loan Payment Relief extension thru December

jasonbourne84 — Fri, 21 Aug 2020 17:00:44 GMT

@calyx wrote:
I don't have FedLoan, but I can't imagine they have any reason to refund the money. It's money you paid for a debt, so it's legally theirs.

If you do it, I'd definitely like to hear more about it!

This is incorrect. Legally, they are in fact required to refund payments made in forbearance.

From https://studentaid.gov/announcements-events/coronavirus/

Re: Student Loan Payment Relief extension thru December

ccquest — Fri, 21 Aug 2020 17:10:56 GMT

@jasonbourne84 wrote:
So, I've paid $7200 toward my fed student loans (Fed Loan Servicing) during forbearance, and am debating asking them to refund that money so that I can stockpile a paymnet for Jan 1. Has anyone else done this with Fed Loan Servicing yet? And regardless, what are everyone's thoughts on this?

If you're not going to do anything with the money between now and then anyway, I'd just let them keep it. If you have a plan to help that money grow some, go ahead and request it back. If some of it was applied to interest instead of principal, I would also see if you could have it reallocated so everything went to principal instead as that would have the greatest benefit to you long term.

Re: Student Loan Payment Relief extension thru December

calyx — Fri, 21 Aug 2020 20:00:42 GMT

@jasonbourne84 wrote:
@calyx wrote:
I don't have FedLoan, but I can't imagine they have any reason to refund the money. It's money you paid for a debt, so it's legally theirs.

If you do it, I'd definitely like to hear more about it!
This is incorrect. Legally, they are in fact required to refund payments made in forbearance.

From https://studentaid.gov/announcements-events/coronavirus/

Dang. Well then, go for it.

Thanks for the correction!

Re: Student Loan Payment Relief extension thru December

ccquest — Fri, 21 Aug 2020 23:47:32 GMT

Good news!!

https://www.ed.gov/news/press-releases/secretary-devos-fully-implements-president-trumps-presidential-memorandum-extending-student-loan-relief-borrowers-through-end-year

https://finance.yahoo.com/news/student-loan-pause-trump-executive-memo-215849366.html

Re: Student Loan Payment Relief extension thru December

calyx — Sun, 23 Aug 2020 19:02:18 GMT

@ccquest wrote:
Good news!!

https://www.ed.gov/news/press-releases/secretary-devos-fully-implements-president-trumps-presidential-memorandum-extending-student-loan-relief-borrowers-through-end-year

https://finance.yahoo.com/news/student-loan-pause-trump-executive-memo-215849366.html

I hope files update soon!
My studentaid.gov account still shows the resumption in October, as does my servicer's site.
I wouldn't normally mind, but I've had medical bills and I prefer as much breathing space as possible