By ARI LAZARUS Consumer Education Specialist, FTCA few months ago, we told you that the Coronavirus Aid, Relief, and Economic Security (CARES) Act gave some flexibility to federal student loan borrowers. Understanding these options can help you make more informed decisions about <a href="https://www.consumer.ftc.gov/blog/2020/04/managing-your-bills-during-covid-19">paying your bills and prioritizing your debts</a>. The benefits <a href="https://www.ed.gov/news/press-releases/secretary-devos-fully-implements-president-trumps-presidential-memorandum-extending-student-loan-relief-borrowers-through-end-year">have been extended</a> until Dec. 31, 2020.So, just to recap, what does the CARES Act mean for you if you have a federal student loan?1. The CARES Act gives <a href="https://studentaid.gov/announcements-events/coronavirus">temporary payment relief</a> to borrowers with qualifying federal student loans. But some federal student loans don’t qualify – for example, older Family Federal Education Loan (FFEL) program loans or Perkins Loans that are owned by the school you attended. Contact your <a href="https://studentaid.gov/manage-loans/repayment/servicers#your-servicer">federal loan servicer</a> online or by phone to find out if your loans are eligible.&nbsp;2. If your federal loans are covered, the U.S. Department of Education has automatically placed your loans into what’s called “administrative forbearance.” That means you can stop making payments on those loans right away, up through Dec. 31, 2020. If your payments automatically come out of your bank account, check if any payments have been processed since March 13, 2020. If they have, you may be able to <a href="https://studentaid.gov/announcements-events/coronavirus#borrower-questions">get a refund</a> as part of administrative forbearance.&nbsp;3. If you want to keep making payments on your qualifying federal student loan through Dec. 31, the interest rate is now 0%. So any payments you make during the forbearance period may help you pay off your debt faster. If you’re on an income-based repayment program and/or a forgiveness program, you should check out <a href="https://studentaid.gov/announcements-events/coronavirus#borrower-questions">Federal Student Aid's Coronavirus page</a> to see which option makes sense for you.4. If your federal student loans are in <a href="https://studentaid.gov/manage-loans/default#understanding-default">default</a>, the U.S. Department of Education has stopped making collection calls, and sending letters or billing statements through Dec. 31, 2020. And if your federal loans were in default and your employer continues to garnish your wages, you’ll get a refund.&nbsp;This program only applies to federal student loans. Not sure what kinds of student loans you have? Here are two things you can do to find out:●Get a complete list of your private and federal student loans by&nbsp;pulling your credit report. (In fact, you can get your report for free&nbsp;every week.)&nbsp;Read through it&nbsp;and find your student loans, taking note of the companies that are your lenders or loan servicers. Compare it to the full list of&nbsp;federal loan servicers found here.●Confirm which of your loans are federal.&nbsp;Log into FSA&nbsp;or call the Federal Student Aid Information Center (FSAIC) at 1-800-433-3243.One more thing: you don’t need to hire a company to help you get this student loan payment relief. The program is already in place and there’s nothing you need to do to enroll.Updated Sept. 14, 2020 with new information about how the CARES Act flexibilities for federal student loan borrowers have been extended until Dec. 31, 2020.&nbsp;The above information is from the Federal Trade Commission Consumer Information <a href="https://www.consumer.ftc.gov/blog/2020/09/if-you-have-federal-student-loans-read?utm_source=govdelivery">blog</a>.

If you have federal student loans, read this