What is the 2020 CARES Act?
On March 20, 2020, President Donald J. Trump announced the federal government will suspend federal student loan payments as part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).
The announcement came after the administration implemented a freeze on student loan interest on certain student loans, which was set to zero.
This law provided relief to workers, employers, and many sectors of the economy.
After several extensions, the COVID-19 emergency relief for student loans is scheduled to end on August 31, 2022.
State Debt Relief for New York State
New York State Governor Andrew M. Cuomo and Attorney General Letitia James announced the state would temporarily halt the collection of student debt owed to the State of New York starting on March 16, 2020.
The suspension also applied to the accrual of interest on student debt for the State of New York and only applies to student loans made by and owed to New York State.
Who Did This Apply To?
Those borrows who took out private loans were not covered under either federal or state plans and paid throughout the pandemic.
For both state and federal plans, this applies to students who were in repayment, meaning students who graduated from or stopped attending college.
It did not apply to college students with six or more credits or the equivalent to half-time student status. Part-time students are in deferment.
Looking for Help Financing College?
Of course, check out our other blogs on grants, loans, and scholarships to learn more about financing college.
The Financial Aid King is here to help!
