Unless you’ve were given a crystal ball, you in all likelihood by no means could have guessed how loopy matters could get over the last few years. It’s been a whirlwind of extrade for sure! And for humans who’ve been critically impacted through the COVID-19 pandemic—deaths and infection withinside the family, unemployment, furloughs, homeschooling, childcare shifting—whirlwind is the understatement of the century.
One of the methods the federal authorities has been seeking to calm the typhoon is thru economic remedy programs. And if you’re one of the forty three million humans with federal scholar loans out there, you then definately may are becoming a few brief remedy to your scholar mortgage bills thru the CARES Act that changed into surpassed in March 2020.1
Since then, scholar mortgage remedy has been prolonged numerous times. Most recently, the president made an govt order to increase the emergency scholar mortgage forbearance once more thru August 31, 2022.2
Let’s test what we recognize approximately the present day scholar mortgage fee remedy extension and what it manner for you.
How the CARES Act Affects Student Loans
Let’s flashback to March 2020 for a minute (don’t worry, we won’t live right here long—it’s simply to get a few context). COVID-19 changed into simply starting to choose up steam withinside the United States and instances had been growing throughout the country. In only a remember of weeks, tens of thousands and thousands of humans unexpectedly observed themselves jobless as companies buckled. In order to assist Americans and stimulate the economy, Congress surpassed the $2.2 trillion Coronavirus Aid, Relief, and Economic Security Act (aka the CARES Act).