Here's what you need to know before choosing student loan forbearance due to the coronavirus (COVID-19):
Borrowers with Perkins Loans should contact their school directly to request forbearance.Public service loan forgiveness is a federal program that many borrowers are relying on to have their student loan balances forgiven. Under this program, borrowers with direct loans who work in the public sector and make 120 qualifying monthly payments will have their loans forgiven tax-free.
Individuals who are not considered to be working full-time during this period, but who still make a payment, will not have that payment count toward PSLF. If you keep making payments, your money will first go toward any interest outstanding on your loans before the government's interest suspension went into effect on March 13. After that, your payments will be applied to your principal balance.
If you are worried about experiencing financial hardship for more than the 60 days of relief offered by the government, there are still steps you can take to manage your student loan payments.
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