Should you pay off student loans during COVID-19?
What to know about COVID-19 student debt relief
Chegg CEO Dan Rosensweig discusses colleges potentially going out of business as a result of the coronavirus and how the company is putting students first during the pandemic.
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Keeping up with student loans during the coronavirus could be a struggle for millions of Americans facing furloughs and unemployment.
Those struggling with student loan debt during the coronavirus can opt to put payments on hold without accruing interest. (Stock).
But under the Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act, the $2 trillion stimulus package that gives economic support to those financially crippled during the pandemic, student loan borrowers are entitled to a number of relief benefits.
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The federal government is offering those with federal student loans an automatic six-month forbearance where payments do not have to be paid, so consumers can allocate funding to basic needs like food and living costs. What's more, no interest will accrue unlike in normal circumstances where borrowers must pay interest while in forbearance.
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For those who do have auto payments scheduled, payments will be suspended. And while suspended payments are automatic, those who wish to continue paying can do so. Some private lenders are also offering relief programs.
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The federal government has also mandated that debt collectors cease collection from loan borrowers until Sept. 30.