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September 03, 2020 | Posted in:

COVID-19 and Student Loan Relief

Some students have a reprieve on paying their student loans this year. That’s a result of the CARES act, an Executive Order by President Trump, and for New Jersey residents, the New Jersey College Loans to Assist State Students program (NJCLASS).

Under the CARES act, payments for certain federal student loans were paused, and interest rates were set to 0% until the end of September. The executive order President Trump signed on August 8th extends this relief through the end of the year. Which loans qualify? Those held by the Department of Education, including:

  • Direct Stafford Loans
  • Direct PLUS Loans for parents and graduate students
  • Direct Consolidation Loans
  • Some FFELP and Perkins loans

If your FFELP or Perkins loan originated after July 1, 2010, it typically is held by the federal government. If that’s the case, it will qualify for forbearance. If you have a loan from a bank, credit union, college, or private company, it will not qualify for the government offered pause in payments. However, many lenders are offering assistance due to the pandemic.

In New Jersey, any borrower who is facing difficult times due to unemployment or illness as a direct impact from COVID-19 can apply for NJCLASS loan relief for temporary disability or unemployment. Also if you have a job but are facing decreased income as a result of the pandemic, you can also benefit from NJCLASS financial relief.

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