ALBANY, N.Y. (NEWS10) — The deferment on federal student loans has been extended to January 1, 2021. Originally, they had been deferred until the end of September.
The federal government says the deferment was extended until the beginning of next year as people with student loan debt continue to struggle with the financial difficulties related to the coronavirus pandemic. The interest rate will remain at 0% until January as well.
In light of the national emergency declared on March 13, 2020, the Secretary of Education shall take action pursuant to applicable law to effectuate appropriate waivers of and modifications to the requirements and conditions of economic hardship deferments described in section 455(f)(2)(D) of the Higher Education Act of 1965, as amended, 20 U.S.C. 1087e(f)(2)(D), and provide such deferments to borrowers as necessary to continue the temporary cessation of payments and the waiver of all interest on student loans held by the Department of Education until December 31, 2020.Whitehouse.gov
Federal student loan holders can opt-out of the forbearance program by contacting them, says federal student loan provider Great Lakes. Loan holders can also request a refund from payments, including automatic payments, made from March 13 through December 31.
Great Lakes federal student loan holders can also continue to make automatic or one-time payments on loans.
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