The Coronavirus Aid, Relief, and Economic Security (CARES) Act, provides automatic suspension of principal and interest payments on federally-held student loans through September 30, 2020. These suspended payments will count towards any student loan forgiveness program.

Here are some of the key points.

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.

Federal student loan borrowers do not need to take any action to suspend payments. Your federal student loan servicer will suspend all payments without any action from you. You do not need to contact your student loan servicer.

Interest will not accrue on your federally-held loans while your payments are suspended. 

The Department of Education has stopped the collection of defaulted federally-owned student loans including garnishment of wages, the offset of tax refunds, and Social Security benefits. There is no additional action required from you for your federally-owned loans. 

For answers to frequently asked questions about the CARES Act and federally-held student loans, and advice on what to do if you can't make your payments on your non-federally-held student loan, visit the Consumer Financial Protection Bureau website.