How does the student loan relief extension work? What you need to know - Business Insider

federal government-owned federal student loanIf you're a borrower with a, you will have to make payments as normal, per the SBPC. . All borrowers covered by the CARES Act can continue with paused payments until September 3o.Taylor said it's unclear whether this relief will be opt-in or opt-out.The CARES Act paused payments for defaulted borrowers, but the memorandum doesn't refer to that suspension.

Will this emergency deferment count as eligible time for borrowers under the Public Service Loan Forgiveness plan? Under the CARES Act, the non-payment months for PSLF borrowers counted toward the 120 monthly payment requirement for public service loan forgiveness. The memorandum doesn't specify whether this will continue.how the extension will be implemented, a spokesperson said, "We're awaiting information to be able to share with you."Many student-loan advocates have criticized the memorandum for being vague and not making enough of a long-term difference.

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