Federal Student Loans Paused at Marist amid COVID-19 Outbreak
On March 27, President Trump signed into law the CARES Act, a section of the coronavirus stimulus package, which included a provision where borrowers can halt the payment of their federal student loans for the next six months.
“Borrowers of federal student loans can pause their payments starting on March 13 through September 30,” Cathy Ridgway, loan coordinator at Marist said. “We have a link on the myMarist website under the student financial resources tab regarding financial aid updates during the coronavirus crisis.”
Borrowers who want to halt their federal loans have been advised to contact their loan servicer online or by phone because students have the choice to continue or pause their payments. In a United States Department of Education press release, Betsy Devos, the U.S. Secretary of Education addressed American’s concerns with federal student loans.
“These are anxious times, particularly for students and families whose education, careers, and lives have been disrupted," DeVos said. "Right now, everyone should be focused on staying safe and healthy, not worrying about their student loan balance growing. I commend President Trump for his quick action on this issue, and I hope it provides meaningful help and peace of mind to those in need."
If requested by a borrower, Secretary DeVos has directed all federal student loan servicers to grant an administrative delay on payments during the time of the coronavirus crisis. Payments are also being suspended on March 13 for any borrower more than 31 days delinquent or for those who become more than 31 days delinquent on their payments.
“There is very encouraging news regarding federal student loans,” Executive Director of Marist Financial Services Joe Weglarz said. “For students who currently default on their loans, they will receive a federal tax refund to repay their federal student loan debt.”
For students who choose to continue their payments over the next six months, they won’t pay any new interest on their loans. The 0% interest rate available to students who continue paying their loans during the crisis will save them money even though the payment won’t be lower. The Department of Education suggested specific borrowers of student loans continue making payments in their press release on March 20.
“Some borrowers may want to continue making payments, like those seeking Public Service Loan Forgiveness (PSLF) or those enrolled in a repayment plan with a manageable monthly payment,” the Department of Education said. “For borrowers continuing to make payments, the full amount of their payment will be applied to the principal amount of their loan once all interest accrued prior to the president's March 13 announcement is paid. The Department will work closely with Congress to ensure all student borrowers, including those in income driven repayment plans, receive needed support during this emergency.”
Marist students who have questions or seek advice about their individual federal student loans going forward should use the link on the myMarist website as well as contact their loan servicer. If students have questions regarding who their loan service provider is or any general questions related to their financial aid during the coronavirus they can contact Marist Student Financial Services.
“Marist Financial Services has introduced a center specifically for student loans,” Weglarz said. “Ridgway leads the center and as a loan coordinator they can help direct students to the right resources regarding their federal student loans.”
“At any point students should feel free to contact our office,” Ridgeway said. “When it comes to federal student loans, students should work and get in contact with their direct loan servicer.”
Students at Marist will be finishing their spring semester remotely due to the coronavirus outbreak. Since the campus is shut down, many Marist students have lost their income for the next few months because of the termination of work study jobs. By creating a package to halt the payment of federal student loans, the federal government has assisted students across the county in their ability to focus monetary spending on rent, food, and other necessities.