Student Loan Payment Extension
If you have federal student loans, you may be eligible for loan payment extensions. The Department of Education has authorized forbearance and waiver options for affected students. If you qualify for a payment extension, your loan payments can be suspended but interest will continue to accrue. You can request a payment extension until September 30, 2020 through the Department’s Payroll Tax Deferment Request Tool .
Impacted by the COVID-19 outbreak?
If you’ve been following the news, you may have heard about the recent outbreak of COVID-19. If not, here’s a quick rundown:
- What is COVID-19?
COVID-19 stands for “Colombia Virus Infection Disease.” It’s a new strain of influenza that was first detected in Colombia in April 2019 and has since spread to at least 23 countries across South America and Central America. The virus causes flu-like symptoms including fever, chills, muscle aches, fatigue and coughing; however some people may have more serious complications such as pneumonia or meningitis. In most cases these symptoms will resolve on their own; however some have died from acute respiratory distress syndrome (ARDS), which occurs when fluid builds up in the lungs making it difficult for oxygen to enter into your bloodstream.
- Timeline for outbreak: March 2019 – present
As of June 22nd there were 471 confirmed cases reported worldwide with 58 deaths attributed to this new strain of COVID-19 influenza virus infection throughout Colombia (388 cases), Venezuela (13), El Salvador (1), Guatemala (8) Brazil (3) Panama then on May 27th Puerto Rico where they identified another case who contracted it while visiting Mexico back home again now diagnosed with having traveled recently outside Florida before arriving here today but not necessarily knowing where he’d been exactly other than multiple states including North Carolina Georgia Alabama Mississippi Louisiana Arkansas Oklahoma Texas New Mexico Arizona Nevada California Utah Idaho Montana Wyoming Colorado Hawaii Washington State..
The Department of Education has authorized forbearance and waiver options for you.
As you may know, the Department of Education allows borrowers to request a deferment or forbearance if they are experiencing a financial hardship. The Department also offers other options for some borrowers who cannot make their monthly student loan payments because they have lost their jobs, received an inheritance or scholarship, are going back to school full-time, etc.
The differences between the two options are that forbearance stops your interest accruing while waiver stops your payments altogether and starts them up again once you’ve paid off any loans that were completely discharged in bankruptcy proceedings.
Forbearance: With forbearance, your lender will allow you to stop making payments on your federal student loans for a period of time without charging interest on those loans during these periods (up to 3 years). This means that it’s not necessary for you to pay anything until after this extended period expires!
Waiver: With waiver, there’s no need for you to repay any portion of outstanding principal balance due on your Direct Loan Program obligations unless such repayment has been authorized by law enforcement officials or court order following garnishment proceedings against wages from employers under Title III consumer credit protection laws relating specifically towards collection agencies having been given administrative authority by Federal Reserve System members’ governing bodies as outlined within Section 332(a)(1)(i), (ii), (iii) & (iv).
The department has authorized an automatic forbearance on payments made through June 30, 2020.
A forbearance is the temporary cessation of making payments on your student loan. During this time, interest still accrues and you may be responsible for paying the full amount of any fees or penalties associated with late payments.
A payment extension is a request to defer your monthly payment date by up to 12 months at once or in smaller increments over time. This can be helpful if you do not have sufficient funds available in order to make your normal monthly payment when it’s due each month, such as when you have an unexpected expense like a medical bill that must be paid out-of-pocket (rather than covered by insurance) or if you’ve had some financial issues with other creditors such as credit cards or car loans that affected what was left over after making certain required payments such as rent/mortgage, utilities (water/gas), phone service and auto insurance premiums before having enough left over for monthly student loan payments too – even though there are no late fees incurred during this time because we’re still working directly with them regarding those charges anyway!
Federal student loans are those issued directly through programs administered by either UMass Amherst itself (like Direct PLUS Loans) OR through organizations such as Sallie Mae/Nelnet Inc., Navient Corp.. Private student loans may only be obtained through banks/lenders via third party lenders like Wells Fargo Bank NA – another example would be Blue Trust America Credit Union which has partnered up with LendKey USA LLC in order help eligible borrowers obtain a low rate today!
During this period, payments may be suspended but interest will continue to accrue.
During this period, payments may be suspended but interest will continue to accrue. Interest is not capitalized until the loan is paid in full or paid off.
You can request a payment extension until September 30, 2020.
To request a payment extension, you will need to submit your request through the Federal Student Aid website. The site will ask you for information about your income, expenses and other financial resources.
Once you submit the online form, it could take up to 30 days for a decision on whether or not your request has been approved. You can check the status of your application by going back into the portal and looking at “My Account.” If you’re approved, they’ll let you know when they’ve received an electronic copy of their IBR/IBR Plan loan statement through 2019-2020 year end discharge payments due date (September 30th 2020).
Use the department’s Payroll Tax Deferment Request Tool to request your payment extension.
If you are considering requesting an extension beyond the 60-day grace period, you must use the Payroll Tax Deferment Request Tool. This tool is available to employees who have submitted a request for an extension when they file their taxes electronically via the IRS website.
To use this tool:
- Log into your account at irs.gov/efile
- Select “Start Over” and then “Continue” (if necessary).
- If a PIN is required, enter it and select “Continue.”
- Enter your Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN), date of birth and other required information as prompted on screen; then select “Continue.”
You can also access this tool using your mobile device by following these steps:
- Download IRS2Go from Google Play Store or iTunes App Store; Log In with your username/password; Go to My Account – Direct Deposit/Direct Payment & Tax Withholding – Extension of Time To File – Manage Deferments – Review & Submit for Approval
If you have federal student loans, you may be eligible for loan payment extensions.
If you have federal student loans, you may be eligible for loan payment extensions. If your situation qualifies, ask your loan servicer to allow you to pay less than the amount that is due.
To request a payment extension through the Payroll Tax Deferment Request Tool:
- Log in to the tool and click “Extensions” at the top of the page.
- Select “Federal Student Loan Payment Extension.”
- Complete all fields, including those related to financial hardship and/or military service.
To request a payment extension through the Department of Education:
- Call 1-800-848-0979 (toll free) or contact your servicer directly if they’re not listed below. If possible, keep track of who you talked with and when so that you can share this information later on if needed by someone else (such as an attorney).
If you aren’t sure if you qualify for a loan payment extension, contact your servicer. You can also use the Department of Education’s Payroll Tax Deferment Request Tool to request an extension. If you don’t qualify for an automatic forbearance or payment extension, you can still apply for one by contacting your servicer or submitting an application through the Federal Student Aid website