Photo : Getty Images

When President Trump signed the $2 trillion coronavirus stimulus bill into law last week, items like recovery rebate checks and expanded unemployment benefits got most of the initial attention. But tucked into the bill around page 825, you’ll find a new set of rules for waiving student loan payments.


It’s confusing because President Trump and Secretary of Education Betsy Devos had previously announced changes to federal student loan payments and interest during the coronavirus pandemic. Here’s what you need to know about the latest round of accommodations, which replaces the previous announcements.

Payments for federal student loans will be put in forbearance through September 30, 2020. It’s automatic—you don’t have to do anything to request that your payments be suspended.


No interest will accrue on suspended federal loans. You won’t receive any negative marks on your credit report: Your loans will be marked as paid during this time.

If you’re eligible for the Public Service Loan Forgiveness program, the next six months will count toward your 120 payments. If you’re in a loan rehabilitation program, you’ll also be counted as paying on time as required to graduate from that program.

All collections on delinquent federal loans will stop during this period. If your wages are being garnished because your loan is in default, that will stop for this six-month period. If your tax refund gets reduced because of your defaulted loans, you won’t experience that during this period. (If you already filed your 2019 tax return, you probably won’t get this benefit.)


You may still make payments toward your principal if you want to reduce your balance now and pay less interest once payments resume.

If you have private student loans, you aren’t covered by this forbearance program. You’ll have to keep paying as usual unless you make arrangements with your lender.


Starting August 1, the Department of Education will issue at least six notices by mail, phone, or email to specify when your normal payments will resume and your options for enrolling in an income-driven repayment program.


The Department of Education has a link with guidance for federal student loan borrowers during the coronavirus pandemic, but it hasn’t yet been updated with the latest adjustments to the payment suspension program.

If you have questions about what these accommodations mean for your loans or your particular circumstances, contact your loan servicer.