Federal student loans and covid19 - UPDATED i replies

[karinothing]

Mar 28, 2020 17:08:59 GMT -5 VillainV said:

Mar 28, 2020 16:09:57 GMT -5 karinothing said:

Yeah I would not worry. If they are with fed loan it says they are working to implement the CARES changes and they will be retroactive. They have 15 days to be on compliance..I assume they will tale the full 15 days.

Ah, okay. It’s an “E” account number. So I guess I’ll cancel the payment on the 2nd? Worst case they haven’t implemented CARES yet and it goes into forbearance.

Does anyone know what happens if we continue to pay even if the loans are suspended? Does it just continue to pay down the principal? We can afford to keep paying and I’d love to know if there’s some benefit. If not, we’ll wait until September.

I think the benefit would be paying down the principal while there is 0% interest if you do not qualify for forgiveness. That and not extending your loan for 6 more months. There is no benefit if you are going for forgiveness..

[VillainV]

Mar 28, 2020 17:10:34 GMT -5 karinothing said:

Mar 28, 2020 17:08:59 GMT -5 VillainV said:

Ah, okay. It’s an “E” account number. So I guess I’ll cancel the payment on the 2nd? Worst case they haven’t implemented CARES yet and it goes into forbearance.

Does anyone know what happens if we continue to pay even if the loans are suspended? Does it just continue to pay down the principal? We can afford to keep paying and I’d love to know if there’s some benefit. If not, we’ll wait until September.

I think the benefit would be paying down the principal while there is 0% interest if you do not qualify for forgiveness. That and not extending your loan for 6 more months. There is no benefit if you are going for forgiveness..

H doesn’t qualify for forgiveness — being a substitute teacher due to my military service doesn’t count. But we’re not bitter.

In that case we will continue to pay I guess. It would be nice to pay down at 0% interest.

[suzyp]

Mar 28, 2020 16:12:09 GMT -5 karinothing said:

Mar 28, 2020 15:08:29 GMT -5 suzyp said:

Be careful because this does not apply to all "federal" loans. My loans are apparently owned by Navient and not the feds, so the waivers do not apply, even though they are federally backed loans. My interest rate is still the same and my payment went through today.

From the Navient website:

If your FFELP loan is owned by a bank or other financial institution, such as Navient, it will not receive an interest waiver. The interest waiver announced by the White House is for federally held loans only, and the government has not extended this relief to FFELP loans owned by banks and other financial institutions. Some FFELP loans were transferred to the federal government. If the government owns your FFELP loan, you may be eligible for the interest waiver, and if so, it would be applied automatically.

Correct that is noted in the article in my OP. As follows:

"Is the payment suspended on all of my student loans, including my private student loans?

No. The suspension of payments applies only to student loans that are held by the federal government, which are the vast majority of student loans issued since 2010. Some federal student loans under the Federal Family Education Loan (FFEL) Program loans are owned by commercial lenders, and some Perkins Loans are held by the institution you attended. These loans are not eligible for this benefit at this time. This benefit also does not apply to private (non-federal) student loans owned by banks, credit unions, schools, or other private entities."

Right. I was just highlighting that it does not apply to all federal loans.  I have FFEL loans (which are federal loans) and they are owned by Navient, so this provides nothing to me.  Which I honestly find ridiculous.

[karinothing]

Mar 28, 2020 17:15:43 GMT -5 suzyp said:

Mar 28, 2020 16:12:09 GMT -5 karinothing said:

Correct that is noted in the article in my OP. As follows:

"Is the payment suspended on all of my student loans, including my private student loans?

No. The suspension of payments applies only to student loans that are held by the federal government, which are the vast majority of student loans issued since 2010. Some federal student loans under the Federal Family Education Loan (FFEL) Program loans are owned by commercial lenders, and some Perkins Loans are held by the institution you attended. These loans are not eligible for this benefit at this time. This benefit also does not apply to private (non-federal) student loans owned by banks, credit unions, schools, or other private entities."

Right. I was just highlighting that it does not apply to all federal loans.  I have FFEL loans (which are federal loans) and they are owned by Navient, so this provides nothing to me.  Which I honestly find ridiculous.

I think the gov probably doesnt have authority to suspend payments in those since they are owned by a private entity. But honestly I don't understand how federal loans are owned by a private entity to begin with.

[VillainV]

Mar 28, 2020 18:46:42 GMT -5 Catlawdy said:

I do wonder a bit if Trump would go for total forgiveness right now of the ones he could, just to take some of the wind out of the sails of what the democratic nominee will run on, to give young voters less incentive to turn out to vote.

Not just young voters but old voters too. This wouldn’t sway H and I in the slightest, but there are plenty in their 40s or older who are still paying off SLs.

[munkii]

If you are unsure who owns your loan, there are two ways to find out.
1. You can log in to the NSLDS (National Student Loan Data System) through the FSA website. It will show all your loans, even if you have multiple servicers, along with data for each loan--current status, amount, original amount, interest, interest rate, and owner.

2. Log in to your servicer's website and select account information. The owner of the loan should be listed per loan--this info is definitely available on Navient and Great Lakes.

FFELP loans are ineligible as PP stated. Direct Loans are loans owned by the govt.

[sent]

My loans are with Navient. I just logged in and it says "$0" due on April 4. But I don't know what it usually says. I also got excited last week when I read about the interest not accumulating on the federal loans and that my loans qualified! Then I dug deeper and found I owe $43 in interest total for the next 15 years. So basically I've been paying interest for the last 15 years. Great.

[wildrice]

Mar 28, 2020 22:49:26 GMT -5 sent said:

My loans are with Navient. I just logged in and it says "$0" due on April 4. But I don't know what it usually says. I also got excited last week when I read about the interest not accumulating on the federal loans and that my loans qualified! Then I dug deeper and found I owe $43 in interest total for the next 15 years. So basically I've been paying interest for the last 15 years. Great.

I don't understand this post at all lol. $43 in interest for 15 years? Mine gain like $250 in interest per month.

2/3-3/4 of my payments for the last almost 12 years have been interest as well. I think I'm paying off an average of 1k per year with my $350 per month payment. No interest for the next 6 months would save me about $1500 in interest so I'm great with that. My H's loans will probably save at least double that (he owes more than me AND has a much higher interest rate). We are both doing PSLF anyway but in case that falls through for whatever reason, I'm thrilled to save the interest accrual for now.

[karinothing]

Mar 29, 2020 8:10:47 GMT -5 wildrice said:

Mar 28, 2020 22:49:26 GMT -5 sent said:

My loans are with Navient. I just logged in and it says "$0" due on April 4. But I don't know what it usually says. I also got excited last week when I read about the interest not accumulating on the federal loans and that my loans qualified! Then I dug deeper and found I owe $43 in interest total for the next 15 years. So basically I've been paying interest for the last 15 years. Great.

I don't understand this post at all lol. $43 in interest for 15 years? Mine gain like $250 in interest per month.

2/3-3/4 of my payments for the last almost 12 years have been interest as well. I think I'm paying off an average of 1k per year with my $350 per month payment. No interest for the next 6 months would save me about $1500 in interest so I'm great with that. My H's loans will probably save at least double that (he owes more than me AND has a much higher interest rate). We are both doing PSLF anyway but in case that falls through for whatever reason, I'm thrilled to save the interest accrual for now.

Ha yeah I was confused too. I gain $13 of interest a day lol. My fed loan still says that on the main page but if I click it days 0% interest.

[womet]

Mar 28, 2020 12:20:13 GMT -5 womet said:

I just logged into Navient and it says I owe $0 for April. Looks like it’s already been applied there.

I’m quoting myself. So I received an email this morning from Navient saying that I owe my regular payment. Logged in, and it says I owe regular payment instead of $0. Looks like Navient isn’t pausing payments until 4/11, so after my payment is due.

My plan is to pause my SL payments and use that money to pay down CC debt.

[waverly]

I have no idea what is going on, but mine says it is taking the normal amount out which is fine because DH and I are still being paid.

[karinothing]

Mar 29, 2020 8:31:14 GMT -5 womet said:

Mar 28, 2020 12:20:13 GMT -5 womet said:

I just logged into Navient and it says I owe $0 for April. Looks like it’s already been applied there.

I’m quoting myself. So I received an email this morning from Navient saying that I owe my regular payment. Logged in, and it says I owe regular payment instead of $0. Looks like Navient isn’t pausing payments until 4/11, so after my payment is due.

My plan is to pause my SL payments and use that money to pay down CC debt.

Did they say they were waiting till 4/11? The law is that it is retroactive so you should get refund. I think they are just nees business days to adjust things but who knows

[sent]

Mar 29, 2020 8:10:47 GMT -5 wildrice said:

Mar 28, 2020 22:49:26 GMT -5 sent said:

My loans are with Navient. I just logged in and it says "$0" due on April 4. But I don't know what it usually says. I also got excited last week when I read about the interest not accumulating on the federal loans and that my loans qualified! Then I dug deeper and found I owe $43 in interest total for the next 15 years. So basically I've been paying interest for the last 15 years. Great.

I don't understand this post at all lol. $43 in interest for 15 years? Mine gain like $250 in interest per month.

I logged in to Navient and I see this for each loan, I have 2 -

Unpaid Principal - $XX,XXX which is 47% of the original principal
Unpaid Interest - $32.48
Current Balance - $XX,XXX + $32.48
Interest Rate - 2.875%
Interest Type - Fixed

Maybe because I have a low interest rate? I did go to school pre-2007 before student loans blew up. We've been paying them for 15 years on a 30 year plan.
ETA - My monthly payment is $320 a month. I looked at the last 2 years of tax statements and also paid about $1K of interest each year for the last 2 years. 

[curbsideprophet]

Mar 29, 2020 8:43:31 GMT -5 sent said:

Mar 29, 2020 8:10:47 GMT -5 wildrice said:

I don't understand this post at all lol. $43 in interest for 15 years? Mine gain like $250 in interest per month.

I logged in to Navient and I see this for each loan, I have 2 -

Unpaid Principal - $XX,XXX which is 47% of the original principal
Unpaid Interest - $32.48
Current Balance - $XX,XXX + $32.48
Interest Rate - 2.875%
Interest Type - Fixed

Maybe because I have a low interest rate? I did go to school pre-2007 before student loans blew up. We've been paying them for 15 years on a 30 year plan.
ETA - My monthly payment is $320 a month. I looked at the last 2 years of tax statements and also paid about $1K of interest each year for the last 2 years. 

I also don’t understand your first post. You accrue interest every month. The further you pay down the principal, the less your interest will be each month. At the beginning of the loan a large portion of the payment goes to interest. Over time that shifts and more and more will go to principal if you keep paying the same amount each month.

[wildrice]

Mar 29, 2020 8:43:31 GMT -5 sent said:

Mar 29, 2020 8:10:47 GMT -5 wildrice said:

I don't understand this post at all lol. $43 in interest for 15 years? Mine gain like $250 in interest per month.

I logged in to Navient and I see this for each loan, I have 2 -

Unpaid Principal - $XX,XXX which is 47% of the original principal
Unpaid Interest - $32.48
Current Balance - $XX,XXX + $32.48
Interest Rate - 2.875%
Interest Type - Fixed

Maybe because I have a low interest rate? I did go to school pre-2007 before student loans blew up. We've been paying them for 15 years on a 30 year plan.
ETA - My monthly payment is $320 a month. I looked at the last 2 years of tax statements and also paid about $1K of interest each year for the last 2 years. 

That's the unpaid interest you've accrued so far since your last payment. It will continue to accrue until your next payment (well, maybe not this month with the 0% thing) and then reset to 0, then start accruing again. It doesn't list future interest since technically you only owe future interest if you continue to have a balance (i.e. you could pay the whole thing off tomorrow and wouldn't owe any interest beyond what has accrued since your last payment).

[sent]

Mar 29, 2020 9:11:42 GMT -5 wildrice said:

Mar 29, 2020 8:43:31 GMT -5 sent said:

I logged in to Navient and I see this for each loan, I have 2 -

Unpaid Principal - $XX,XXX which is 47% of the original principal
Unpaid Interest - $32.48
Current Balance - $XX,XXX + $32.48
Interest Rate - 2.875%
Interest Type - Fixed

Maybe because I have a low interest rate? I did go to school pre-2007 before student loans blew up. We've been paying them for 15 years on a 30 year plan.
ETA - My monthly payment is $320 a month. I looked at the last 2 years of tax statements and also paid about $1K of interest each year for the last 2 years. 

That's the unpaid interest you've accrued so far since your last payment. It will continue to accrue until your next payment (well, maybe not this month with the 0% thing) and then reset to 0, then start accruing again. It doesn't list future interest since technically you only owe future interest if you continue to have a balance (i.e. you could pay the whole thing off tomorrow and wouldn't owe any interest beyond what has accrued since your last payment).

Ok so since I totally read my loan page wrong, I’ll basically be off the hook for around $43 a month for as long as this is in place. Yay stimulus package.

[starryfish]

Mar 28, 2020 22:49:26 GMT -5 sent said:

My loans are with Navient. I just logged in and it says "$0" due on April 4. But I don't know what it usually says. I also got excited last week when I read about the interest not accumulating on the federal loans and that my loans qualified! Then I dug deeper and found I owe $43 in interest total for the next 15 years. So basically I've been paying interest for the last 15 years. Great.

Be careful, I logged into my husbands navient and it said $0 for April 1 but we have auto pay set up. I canceled auto pay and then it says we owe our original payment April 1.

[sent]

Mar 29, 2020 9:43:39 GMT -5 starryfish said:

Mar 28, 2020 22:49:26 GMT -5 sent said:

My loans are with Navient. I just logged in and it says "$0" due on April 4. But I don't know what it usually says. I also got excited last week when I read about the interest not accumulating on the federal loans and that my loans qualified! Then I dug deeper and found I owe $43 in interest total for the next 15 years. So basically I've been paying interest for the last 15 years. Great.

Be careful, I logged into my husbands navient and it said $0 for April 1 but we have auto pay set up. I canceled auto pay and then it says we owe our original payment April 1.

Thanks. I also have them setup on autopay.

[womet]

Mar 29, 2020 8:39:14 GMT -5 karinothing said:

Mar 29, 2020 8:31:14 GMT -5 womet said:

I’m quoting myself. So I received an email this morning from Navient saying that I owe my regular payment. Logged in, and it says I owe regular payment instead of $0. Looks like Navient isn’t pausing payments until 4/11, so after my payment is due.

My plan is to pause my SL payments and use that money to pay down CC debt.

Did they say they were waiting till 4/11? The law is that it is retroactive so you should get refund. I think they are just nees business days to adjust things but who knows

Here what their site says:

[karinothing]

Mar 29, 2020 11:33:20 GMT -5 womet said:

Mar 29, 2020 8:39:14 GMT -5 karinothing said:

Did they say they were waiting till 4/11? The law is that it is retroactive so you should get refund. I think they are just nees business days to adjust things but who knows

Here what their site says:

Interesting. I think they would still need to refund your payment before then, but who knows

[pinkballoons]

I’m irritated. My loans qualify, but I sent in my April payment early last week. Oh well.

[wildrice]

Mar 29, 2020 9:39:06 GMT -5 sent said:

Mar 29, 2020 9:11:42 GMT -5 wildrice said:

That's the unpaid interest you've accrued so far since your last payment. It will continue to accrue until your next payment (well, maybe not this month with the 0% thing) and then reset to 0, then start accruing again. It doesn't list future interest since technically you only owe future interest if you continue to have a balance (i.e. you could pay the whole thing off tomorrow and wouldn't owe any interest beyond what has accrued since your last payment).

Ok so since I totally read my loan page wrong, I’ll basically be off the hook for around $43 a month for as long as this is in place. Yay stimulus package.

Well, that and you also won't have to make payments. So you're not adding anything to your balance but you're also not lowering it - you're just taking a pause from paying.

Honestly although I'd prefer straight up forgiveness, I think this is actually a decent plan. Our household is on income based repayment but we still pay $500 a month in payments. This gives us an extra 3k in our pockets in the next 6 months. Normally when you do a deferment or forbearance, it still accrues interest during that time which then gets added to your balance and the interest compounds so you end up paying interest on the interest.  

[wildrice]

My H's loans are showing 0% interest rate, but still that a payment is due on April 7th. I am guessing I should not suspend payment if I don't want to end up showing overdue? We are in the process of buying a house so I don't want a late payment showing up during our mortgage underwriting process. I'd rather not pay it if we don't have to (we are on PSLF) but it seems risky to just not pay, either.

Mine aren't due until the 14th so hopefully by then it will be straightened out and the payment won't be taken. With the income based payment our monthly bill is weighted more heavily toward his loans anyway so my payment is the smaller one.

[karinothing]

studentaid.gov/announcements-events/coronavirus

Updated text NOTE - the 0 payments also count towards IDR 30 year forgiveness plans.

Questions About the Forbearance (Temporary Suspension of Payments)

UPDATED: I understand that my loans will be placed in administrative forbearance, temporarily suspending my monthly payments. How long will the administrative forbearance last?

The administrative forbearance will last from March 13, 2020, through Sept. 30, 2020.

NEW: If I’m currently in an income-driven repayment (IDR) plan, will my suspended payments count toward IDR forgiveness?

Yes.

NEW: Will suspended payments count toward Public Service Loan Forgiveness (PSLF)?

If you have a Direct Loan, were on a qualifying repayment plan prior to the suspension, and work full-time for a qualifying employer during the suspension, then you will receive credit toward PSLF for the period of suspension as though you made on-time monthly payments.

NEW: What will happen to my regular auto-debit payments if I do nothing?

Auto-debit payments are suspended during the administrative forbearance. Any auto-debit payments processed between March 13, 2020, and Sept. 30, 2020, can be refunded to you. Contact your loan servicer to request that your payment be refunded.

If you don’t want an administrative forbearance and want to continue making payments, contact your loan servicer to opt out of the administrative forbearance, and your auto-debit payments will resume.

You also have the option to remain in the administrative forbearance and make manual (i.e., not auto-debit) payments during the administrative forbearance period. Visit your loan servicer’s website to make a payment, or contact your loan servicer for more information.

NEW: If I made a payment after the president signed the CARES Act on March 27, 2020, can I receive a refund?

Yes; any payment you made during the administrative forbearance period (March 13, 2020, through Sept. 30, 2020) can be refunded. Contact your loan servicer to request that your payment be refunded.

NEW: If I’m trying to rehabilitate my defaulted student loan, will my suspended payments count toward my rehabilitation?

Yes.

UPDATED: How will I know when I will have to start making payments again?

The 0% interest period and administrative forbearance is currently set to expire on Sept. 30, 2020. Your servicer will contact you, no later than in August, to remind you that you will need to start making payments again. Make sure your contact information is up to date in your loan servicer account profile.

UPDATED: What if I want to continue making payments?

If you wish to continue paying your loans during the administrative forbearance period, or to pay more or less than your regular payment amount, you are free to do so. Contact your loan servicer or visit your servicer’s website to make a payment or to find out how you can continue or start auto-debit payments. Continuing to make payments during the administrative forbearance could help you pay down your loan balance more quickly because the full amount of a payment will be applied to principal once all interest accrued prior to March 13, 2020, is paid.

If you continue making regular payments but then experience a change in income, please contact your loan servicer as soon as possible to discuss options, such as enrolling in an income-driven repayment plan to lower your payments or opting in to the administrative forbearance that ends Sept. 30, 2020.

What if I want to continue making a partial payment while my loan is in forbearance?

As long as you are in forbearance, you will not be penalized for making a payment that is less than your usual monthly payment. Meanwhile, you still have the option to make a payment on your loan to make progress toward reducing your balance. Contact your loan servicer or visit your servicer’s website to make a payment or to find out how you can continue or start auto-debit payments.

[mel]

So, I logged in this morning and it shows that I don't have a payment due until November. It's through Direct Loans. Did they extend the suspension length?

[karinothing]

Also I wanted to note this

During the period of 0% interest (March 13, 2020, through Sept. 30, 2020), the full amount of your payments will be applied to principal once all the interest that accrued prior to March 13 is paid.

This is important if you are on IBR/IDR and have a large interest balance. There is no way that I would ever touch the principal if I made payments.

[okla]

I'm annoyed. My largest loan is an FFEL so doesn't qualify. Still a federal loan, why wouldn't it be covered?

[karinothing]

Apr 2, 2020 13:17:15 GMT -5 okla said:

I'm annoyed. My largest loan is an FFEL so doesn't qualify. Still a federal loan, why wouldn't it be covered?

I think they are not really federal loans. They are private loans guaranteed by the government. So I don't think the government has authority to suspend payments on them since they do not own them.

[foodiemom]

I need to look into this. I am 99% sure my loans are federal - I log into aessuccess and loan type indicates both are federal, but the only information on there is that they are experiencing high call volume. My full payment still says it is due at the end of April per usual.

[karinothing]

Apr 2, 2020 20:38:28 GMT -5 foodiemom said:

I need to look into this. I am 99% sure my loans are federal - I log into aessuccess and loan type indicates both are federal, but the only information on there is that they are experiencing high call volume. My full payment still says it is due at the end of April per usual.

Mine till says the full amount of is due but, when I click on loan details it says "forbearance." I didn't request this, this is them putting it into administrative forbearance. So try clicking on details!