Debt Management

COVID-19 Relief for Federal Student Loan Borrowers

This month, many universities and colleges are welcoming students back to campus, even if most campuses are largely online this year.

But that's not all that's different. The current administration has issued an executive memorandum that extends the temporary halt on all federal student loan payments, which was originally granted by the CARES Act, until December 31, 2020. This executive action instructs the Department of Education to “continue the temporary cessation of payments and the waiver of all interest on student loans held by the Department of Education.”

What about the interest?

As stated above, this recent executive action extends the 0% interest on the following types of federal student loans.

  • Direct Loans
  • FFEL Program loans
  • Perkins Loans

With back-to-school time happening now, don’t forget about this important change for federal borrowers. If you have any questions about how to best leverage this change or financially prepare for college, we would be happy to speak with you.

Sources:

Whitehouse.gov, August 8, 2020


Please remember that different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this content, will be profitable, equal any corresponding indicated historical performance level(s), or be suitable for you or your portfolio. Due to various factors, including changing market conditions, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter (article) serves as the receipt of, or as a substitute for, personalized investment advice from Allos Investment Advisors, LLC.

The content of this letter does not constitute a tax or legal opinion. Always consult with a competent professional service provider for advice on tax or legal matters specific to your situation. To the extent that a reader has any questions regarding the applicability of any specific issue discussed in this content, he/she is encouraged to consult with the professional advisor of his/her choosing.

Published for the blog on September 22, 2020 by Allos Investment Advisors, LLC.

masterblack-150x72.png

12980 Foster Street, Suite 160

Overland Park, KS 66213

Copyright © 2021 Allos Advisors.
+880 322448500 Beverly Boulevard Los Angeles