Relief for Student Loan Borrowers from the Coronavirus Bill

In this video, we discuss the Relief for Student Loan Borrowers from the Coronavirus Bill.

Key Points:

Federal student loan payments deferred

• No payments required until 9/30/2020

• No interest will accrue during the interim

• Will still count towards loan forgiveness programs (example PSLF)

  • This is like 6 free months of payments toward qualifying for forgiveness

• You will still need to be employed in a qualifying job.

• Required payments are suspended, but voluntary payments are not prohibited

  • Must be proactive to stop payments if required

• Typically employers can give a benefit of up to $5250/year for education reimbursement. This year, this has been amended to include payments towards student loans for the same amount.

• If your employer offers education reimbursement, contact them and ask about this benefit to pay your student loans if you have them.

• These payments will be excluded from employee income

• Must still be coordinated with the regular $5250 limit for tax-free education. You cannot get both $5250 for education and $5250 for loans. But you could split the total benefit 50% loans/50% education.

• Periods of enrollment will not include a semester not complete ‘due to a qualifying emergency’

Involuntary debt collections on Federal student loans also suspended

Employers can exclude student loan repayments from compensation

This is only for 2020.

Pell Grant and Subsidized Federal Loan Relief for Students Leaving School

• Periods of enrollment will not include a semester not complete ‘due to a qualifying emergency’

Check out the slides in the video here.

Feel free to share with someone you know that has student loans :)

-Jason