The new “Coronavirus Aid, Relief and Economic Security Act” (CARES Act) will provide some student loan relief.
The legislative package provides a $2 trillion economic stimulus for businesses and families faced with the economic challenges of the COVID-19 coronavirus.
Additionally, the legislative package provides a 6-month relief for federal student loan borrowers.
The Secretary of Education will be deferring student loan payments, principal, and interest for 6 months, through September 30, 2020, without penalty to the borrower for all federally owned student loans.
This provides relief for over 95 percent of student loan borrowers.
