The NBA has been canceled, schools are shutting down, daycares are letting out, however we’re not canceling student loans. On Friday the President announced a freeze on federal student loan interest due to the coronavirus pandemic. Subsequently as unemployment numbers soar.
Federal loans versus private loans
It’s important to understand the difference between federal student loans and private loans.
- Federal student loans are offered by the government and private loans are offered by private companies.
- This does not apply to all loans but you should take advantage of this.
- How do you know which federal loans have 0% extended? Call your loan provider to find out.
Student Loans aren’t forgiven
In conclusion student loans are not being forgiven but this is a huge break to eat away at the interest on your loans. However this is only applicable on interest on your federal loans. Yes, you still have to pay on your loans. This freeze is until further notice and retroactive dates to Friday.
This is a good time to take advantage of paying your loans aggressively. Yes, you still have to pay and the interest is waived. You can make major cuts into your student loans. There’s some silver lining in all of this and now is the time to act before this too comes to an end.