The Department of Education just announced that all borrowers with federally held student loans will automatically have their interest rates set to 0% for a period of at least 60 days. In addition, each of these borrowers will have the option to suspend their payments for at least two months in order to allow them greater flexibility during the COVID-19 national emergency. The Department of Education has also directed all federal student loan servicers to grant an administrative forbearance for 60-days to any borrower with a federally held loan who requests one.
SFA will schedule a Student Loan ABS Issuer Committee call next week in order to discuss how SLABS issuers are managing the COVID-19 crisis. Please contact Hunter Hamrick if you would like to join the call.
SFA will continue to monitor the COVID-19 situation and keep our members updated during these unprecedented and uncertain times.