The Coronavirus Aid, Relief and Economic Security Act (CARES Act), which was signed into law by President Donald Trump on Friday, March 27, 2020, includes several provisions that apply to certain federal student loans owned by the Department of Education.

Specifically, payments on non-defaulted Direct Loans and Federal Family Education Loans (FFEL) that are owned by the government are suspended until Sept. 30, 2020. Interest will not accrue on loans that are in payment suspension due to the coronavirus pandemic.

The CARES Act also suspends involuntary collection of defaulted Direct Loans and FFELs that are owned by the government until Sept. 30, 2020, which includes nonjudicial wage garnishment and federal benefit offset, and other types of government collection.

Borrowers must contact their lenders in order to request loan forbearance (i.e., a suspension of payment).

CARES Act and Student Loans