CARES Act Temporarily Suspends Federal Student Loan Payments and Interest
On April 14, 2020 by Jeff Bostic
The federal COVID-19 relief bill known as the CARES Act includes benefits that go beyond payments to individuals and financial assistance to health care providers. One of the lesser known benefits is a temporary suspension of interest accrual and monthly payments on some student loans.
Under the CARES Act, no payments will be due and no interest will be charged on federal student loans from March 23 to Sept. 30
Members who are paying student loan payments as a benefit for employees, including care centers claiming these as scholarship costs on the annual cost report, should be aware of this temporary change.
Members should also be aware that not all student loans are issued by the federal government, and other student loans will continue with the usual payment schedule unless the lender authorizes some change.