Coronavirus Information Center
The coronavirus outbreak has changed the entire landscape of student loan repayment and refinance. For instance, if you have federally held student loans, you do not currently need to make any repayment on them, as the government is offering automatic interest-free forbearance through Jan. 1, 2023. (See below for more details.)
In order to give you the very latest information on how to deal with your student loans during this crisis, we’ve created this information center with updated guidance and links to our latest reports on new developments.
Note that some of our advice during this pandemic is a little different than what it is in normal times, so be sure to consult this page first when you have questions about your student loans. We’ll be updating this information center regularly to get you all the details on how to keep student debt from wrecking your finances during the outbreak.
LendingTree wishes you and your loved ones safety and well-being during this difficult time.
Frequently asked questions
The U.S. government has suspended all federal student loan payments and halted all interest charges, through Jan. 1, 2023. At the same time, all collections and garnishments on federal student loans in default have stopped as well. Check out more information in our detailed report.
How good an idea refinancing is right now will depend on your personal situation, and especially whether you’re talking about federal or private loans. If you’re concerned about your finances or losing a job, you’ll likely want to hold tight on your federal loans, as all payments are suspended.
On the other hand, interest rates have plunged in reaction to the coronavirus pandemic, so it’s a great time for deals if you’re considering refinancing — particularly with private student loans, since those payments haven’t been suspended, and you won’t be giving up any federal protections.
As for refinancing federal student loans, first make sure that your finances are solid and you’ll be able to afford the payments before you trade the government protections on your federal loans for a potentially lower interest rate.
For more information…
- Check out our picks for the best refinancing lenders
- Crunch the numbers with this student loan refinancing calculator
The relief programs for federal student loans mentioned above also extend to any parent loans you might have taken out for a child, grandchild or other student — so long as they’re held by the government.
This includes the suspension of payments, the halt to collections for delinquent loans, and even the awarding of credit toward student loan forgiveness, regardless of whether you pause repayment (see next question).
For a parent-focused rundown of the benefits currently on offer as part of the coronavirus relief efforts, as well as what you might be able get from private lenders, check out our report on parent loans during the pandemic.
You will still be able to make progress toward Public Service Loan Forgiveness or other federal forgiveness programs — even as you take advantage of the six-month suspension of payments, the programs will still consider it as if you had kept up your repayment, the Consumer Financial Protection Bureau said.
If you get a phone call or see an ad promising student loan relief in exchange for a fee, you could be dealing with a student loan scam.
Know that you should never have to pay anything to put your loans into forbearance. Similarly, your lender is unlikely to contact you to offer forbearance or deferment options — it’s up to you to reach out to your lender.
During these tough times, beware any predatory loan companies that want to charge you money or are making promises that seem too good to be true.