What You Need to Know If You Have Student Loans and Are On Public Loan Forgiveness Plan

Any public servants out there? Any public servants with student loans and on the loan forgiveness train?
From March 13, 2020 til Sept 30, 2020 your loans are in forbearance.
What you need to know: do not pay during this time if you meet the criteria above (public service loan forgiveness)
You will get credit for April, May, June, July, August, and September as if you paid but they have stopped auto withdrawal so 5 months of no payments & credit as if you paid!!
You do not have this added to the 10 years – it is waived – thank you government.
To recap: if you are on autopay, you do nothing – it stopped for you. Do not make payments because you are paying for nothing (overpaying) and that money can be saved to use later or a nice gift for you.
So what if I have student loans but am not public service.. – so what does this mean? 0% during this time so if you pay – 100% goes to the principal which means you will see a drop in what you owe sooner …depending on your circumstance – you can pay it down, pay off some bills, or enjoy the 5 months of no payment.

COVID-19 Relief for Student Loan Borrowers

Last Updated: Friday, April 10, 2020

As we navigate the challenges posed by the spread of COVID-19, we remain committed to supporting borrowers.

We are working diligently to enact all benefits as provided by the CARES Act and will have customer accounts updated as soon as possible. No action is required on your part at this time. Should you have any questions, sign in to your online account or contact us for assistance.

0% Interest for Student Loans

  • The interest rate on all federally held student loans serviced by FedLoan Servicing will temporarily be reduced to 0% until September 30, 2020.
  • FedLoan Servicing will automatically adjust accounts so that interest doesn’t accrue (i.e., accumulate). The account adjustment will be effective March 13, 2020.
  • This 0% interest rate change will be applied to all federally held loans in any status (in school, in grace, in repayment, in deferment/forbearance, etc.).

Temporary Suspension of Payments

  • All borrowers will automatically be placed on an administrative forbearance which will temporarily suspend monthly payments. 
  • The administrative forbearance will last from March 13, 2020, through Sept. 30, 2020.
  • A borrower can request that this administrative forbearance be removed at any time. If the forbearance is removed, required payments will resume.

Payments (including Direct Debit)

  • Direct Debit payments are automatically suspended during the administrative forbearance.
  • Any payments (Direct Debit or otherwise) processed between March 13, 2020, and Sept. 30, 2020, can be refunded; refund requests can be made by contacting us.
  • Borrowers still have the option to make manual payments (i.e., via Account Access or mobile app) on their loans to make progress toward reducing their balance. Payments can be the full amount or a partial amount.

NOTE: If payments are made during the period of 0% interest (March 13, 2020, through Sept. 30, 2020), the full amount of your payments will be applied to principal once all the interest that accrued prior to March 13 is paid.

Public Service Loan Forgiveness (PSLF) & Income-Driven Repayment (IDR)

  • Borrowers with a Direct Loan, whom are on a qualifying repayment plan prior to the suspension, and work full-time for a qualifying employer during the suspension, will receive credit toward PSLF for the period of suspension as though on-time monthly payments were made.
  • Borrowers currently on an IDR plan will have suspended payments count toward IDR forgiveness.

Questions please ask!

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A travel, home, & lifestyle blog written by Heidi Stevenson. Follow along for affordable ways to travel, sophisticated and savvy style, expensive looks for less for the home, and everyday style



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