Payment plans now available. Click here for more information.

Do I Have To Pay My Student Loans During The Coronavirus Quarantine?

Drew Koven
Drew Koven Court Buddy Board Member
Andrew “Drew” Koven is the Co-Managing Director of LDR Ventures, a Female led and Los Angeles based Venture Capital and Management Consulting firm.
  • Other Contributors :
    Image by 3D Animation Production Company from Pixabay
Graduation Gap on stack of money, paying student loans during coronavirus

If you’re like most young adults, you have some debt from your years in college. The average amount owed, among students who graduated in 2018, is $29,200, according to the Institute for College Access and Success

That means that these young adults were paying just over $300 per month, depending on their interest rate and the length of their repayment plan, when the Coronavirus hit.

Many of these people suddenly found themselves out of work, or working less. Or they found their budgets stretched thin for a variety of reasons, including:

  • Having partners or roommates who lost jobs and need help paying their part of the rent or mortgage
  • Paying for the care of loved ones who are sick, or suddenly out of school or daycare

To help student loan borrowers, Congress and President Trump signed the CARES Act into law. 

The Act was designed to help many Americans, including:

It also provides offers relief for federal student loan borrowers. Here are the main things you need to know about your student loans:

Student Loan Payments will automatically stop from March 13, 2020, through Sept. 30, 2020

 

To help student loan borrowers during the COVID-19 emergency, federal student loan borrowers are automatically being placed in an administrative forbearance, which means you can temporarily stop making your monthly loan payment. 

 

You will not have to pay until the end of September. 

During that time, interest will not accrue.

 

The best part? You don’t even need to go online or pick up your phone to ask for a pause in payments. It will happen automatically. 

 

 You can still make student loan payments if you choose to, however. 

 

If you can pay those loans, do it though. The interest rate on all student loans has been reduced to 0% until the end of September. 

 

At that point, interest rates may increase. 

    

So if you can keep paying, do it. You’ll be saving money in the long run. 

 

This all depends on what type of student loan you have, however.

 

The CARES act only applies to those who have federal student loans. 

 

If you are not sure if you have a federal loan, go to StudentAid.gov to find out. 

 

If you discover that you have a private student loan, which isn’t covered by the CARES Act, contact your lender or servicer. 

 

They’ll likely offer you a similar deal. 

 

Some states have already done the hard work for you, and worked out plans with private student loan lenders that will give you the same protections the CARES Act provides for federal loans. 

 

Remember that the situation and laws are always changing.

 

Just as the Coronavirus spreads fast, laws are changing fast. 

 

Here are some great places to see the latest status on student loan laws. 

 
Court Buddy is here to connect you with an experienced and trusted lawyer who can help you at an affordable rate. The company assists with the management of your case and lawyer relationship. Your lawyer will assess your legal issue in a timely and confidential manner, explain why you need or do not need a lawyer, and only charge you for the legal services performed and associated out of pocket fees. This article is intended to convey general information and does not constitute legal advice.
 

Ready to get started? We’re here to help.

Related Blogs

  • Patty Lamberti
  • |
  • 29 July, 2020
How Eviction Moratoriums Help Prevent The Spread Of COVID-19

- additional reporting by Monzerrath Ortiz Eviction moratoriums mean landlords can't evict tenants who aren't paying rent due to...

  • Carlee Sutera
  • |
  • 28 July, 2020
The Dirty Tricks Landlords Pull To Force You Out And What To Do About Them

In the midst of a global pandemic, record high unemployment rates, and the official end of the federal moratorium on evictions, renters need to b...

  • Cassidy Chansirik
  • |
  • 28 July, 2020
What To Do If Your Job Asks You To Sign A COVID-19 Liability Waiver Upon Returning To Work

Some workplaces, fearful of future lawsuits, are asking their employees to sign COVID-19 liability waivers upon returning to work in-person. ...

  • Patty Lamberti
  • |
  • 24 July, 2020
The Day We've Been Dreading Is Here

Tomorrow is July 25th, a date we've been dreading for a long time because the federal moratorium on evictions will end. This eviction ban ...

  • Patty Lamberti
  • |
  • 24 July, 2020
Don't Sign COVID-19 Liability Waivers

We had an article published today on Fast Company about how many schools and universities are asking people to sign COVID-19 liability waivers,&n...

  • Sona Sulakian
  • |
  • 22 July, 2020
What Happens When Federal Unemployment Benefits End This Week

More than 25 million Americans are set to lose $600 per week in unemployment benefits this Saturday, July 25 (July 26 for New York), unless Congr...

Hablamos Español

Hablamos Español

Still have questions?

Call us toll-free at (866) 653-3017 to speak with a Client Success Specialist today.

Hablamos Español

Hablamos Español

Reviews
Overall great experience from beginning to end! On the plus, I won my case!"

Overall great experience from beginning to end! On the plus, I won my case!"

Jonathan R, California

Court Buddy made it easy for me to handle my tough court case. I feel like I'm not alone."

Court Buddy made it easy for me to handle my tough court case. I feel like I'm not alone."

Silvia S, California