WASHINGTON — Borrowers with federally held student loans will have their interest rates set to zero for the next 60 days as the world grapples with the economic impact of COVID-19, U.S. Secretary of Education Betsy DeVos announced.
Student loan debt has become one of the most pervasive categories of consumer debt, affecting more than 44 million Americans and totaling more than $1.5 trillion.
In addition to the interest freeze, each federal borrower will have the option to suspend his/her payments for at least two months. The forbearance will be in effect for a period of at least 60 days, beginning from March 13. Borrowers must contact their loan servicer online or by phone to request this.
DeVos has also authorized an automatic suspension of payments for any borrower more than 31 days delinquent as of March 13, 2020, or who becomes more than 31 days delinquent.
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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 March 13 is paid.
Visit studentaid.gov/coronavirus for more details.
