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Student Loan Forgiveness: COVID-19 Relief for Student Loan

By: Mary Jones

Traveling knowledge

Connecticut Residents Receive Additional Relief

Borrowers in need of assistance should immediately contact their student loan servicer to identify the options that are appropriate to their circumstances.

How do I find out what type of student loan I have?

Federal Student Aid Information Center at 1-800-433-3243 or 1-800-730-8913 (TDD). Borrowers with private student loans can check the contact information on their monthly billing statements.

Private Student Loan Servicers Providing Relief

– Aspire Resources, Inc. – College Ave Student Loan Servicing, LLC – Earnest Operations – Edfinancial

Temporary Pauses Are Still Automatic

The temporary 0% interest rate on all federally held student loans will also continue.

Loan Forgiveness and Rehabilitation Programs

Months during the pause will continue to count toward the 120 payments required by the Public Service Loan Forgiveness program

Independent students can get a stimulus check

Students who are married with no children will receive a total $2,400 if their combined income is $150,000 or less. Those with children can receive an additional $500 per child.

You might qualify for unemployment benefits

If you worked part-time or full-time while enrolled, and you were laid off — or if you’re a gig worker whose work is affected by the pandemic — you may be eligible for unemployment benefits.

You can still receive federal work-study

If your school or employer closes and you lose your federal work-study job, you may be eligible to receive multiple payments or a one-time grant for the remaining period you were set to work.

Get reimbursed if your campus closes housing

– Aspire Resources, Inc. If you had to leave campus and are now learning remotely, you may be able to get some of your money back. Most schools are reimbursing students for some of their non-tuition costs

stay on campus if you have nowhere to go

If your dorm is your primary residence, contact your college housing and financial aid offices to find out your options for remaining on campus.

Emergency aid may be available

Colleges may have emergency funds already available, and the CARES Act provides $7 billion in funds to colleges specifically designated for emergency financial aid.

Loan and Pell Grant limits are waived

For those who don’t complete college this semester, the CARES Act calls for colleges to waive lifetime limits on certain aid, including Pell Grants