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Student loan payments suspended for six months under Senate bill

Student loan borrowers would be allowed to put off paying their federal student loan payments without penalty until September 30 under the Senate...

Posted: Mar 25, 2020 7:00 PM
Updated: Mar 26, 2020 8:00 AM

Student loan borrowers would be allowed to put off paying their federal student loan payments without penalty until September 30 under the Senate coronavirus stimulus bill passed late Wednesday.

The bill provision extends the plan already put in place by the Education Department amid the coronavirus crisis, which allows borrowers to defer their payments without interest for at least 60 days. But the deferred-payment benefit currently isn't automatic and requires borrowers to contact their loan servicers to ask for help.

The Senate bill automatically suspends those payments without interest for the next six months. It also suspends the collection on defaulted debts -- including wage and tax refund garnishment.

Education Secretary Betsy DeVos said Wednesday that collections will be stopped for at least 60 days.

The Senate bill offers an additional benefit for those borrowers seeking loan forgiveness through the Public Service Loan Forgiveness program, for example. Those borrowers should still see their debt wiped away after 10 years, without being penalized for not making payments over the next six months.

But the bill stops short of a Democratic proposal to cancel a minimum of $10,000 in student debt per borrower over the course of the national emergency.

The Center for Responsible Lending is concerned that some federal student loan borrowers will be left out under the draft bill. It applies to those with federally held loans and excludes private loans, as well as some federally guaranteed loans -- likely including some disbursed prior to 2008.

Under the bill, borrowers would still be allowed to make payments during the six months.

Although the White House and Senate leaders struck a deal on the legislation early Wednesday morning, an exact time for the Senate vote has not yet been scheduled and it's not yet clear when the House will vote to approve the measure.

This story has been updated with the Senate passage of the bill and additional details from the legislation.

Minnesota Coronavirus Cases

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Confirmed Cases: 92100

Reported Deaths: 2037
CountyConfirmedDeaths
Hennepin26264926
Ramsey10635318
Dakota7280125
Anoka5870132
Stearns386524
Washington365255
Scott248733
Olmsted234627
Nobles194316
Blue Earth16326
Wright15537
St. Louis145138
Carver13757
Clay131640
Rice13118
Mower13085
Sherburne111414
Kandiyohi9552
Winona85518
Lyon6614
Waseca5668
Steele5302
Freeborn5293
Benton5223
Nicollet51516
Watonwan5144
Todd4832
McLeod4702
Chisago4661
Crow Wing46418
Le Sueur4464
Otter Tail4074
Beltrami3885
Martin35710
Goodhue3449
Pine3070
Itasca29914
Polk2944
Douglas2782
Isanti2710
Becker2572
Carlton2461
Cottonwood2190
Unassigned21852
Morrison2161
Pipestone21610
Dodge2140
Chippewa2031
Meeker1892
Sibley1893
Brown1822
Wabasha1800
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Rock1620
Murray1562
Mille Lacs1533
Redwood1511
Cass1423
Jackson1371
Renville1367
Faribault1320
Swift1231
Houston1170
Koochiching1173
Roseau1170
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Pennington1151
Fillmore1110
Lincoln1050
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Pope900
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Grant594
Wilkin583
Lake570
Norman520
Marshall501
Lac qui Parle471
Mahnomen461
Red Lake401
Traverse290
Clearwater260
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Kittson120
Cook60

Iowa Coronavirus Cases

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Confirmed Cases: 82537

Reported Deaths: 1289
CountyConfirmedDeaths
Polk15571261
Woodbury517363
Johnson507327
Black Hawk442188
Linn3878109
Story336917
Dubuque298541
Scott287528
Dallas274138
Pottawattamie203338
Buena Vista195912
Marshall176834
Sioux14693
Wapello129657
Webster121314
Clinton109220
Plymouth109120
Muscatine109054
Crawford10425
Cerro Gordo101721
Warren9456
Jasper80232
Des Moines7517
Marion7465
Tama69931
Henry6554
Carroll6505
Lee6137
Wright5701
Dickinson5036
Boone4938
Bremer4757
Washington44911
Louisa42615
Mahaska36819
Delaware3653
Franklin34618
Hamilton3233
Jackson3173
Winneshiek3156
Floyd3103
Clay3094
Benton3021
Hardin2931
Winnebago28413
Lyon2804
Poweshiek2708
Butler2652
Buchanan2621
Clarke2623
Jones2583
Emmet25410
Allamakee2526
Shelby2501
Kossuth2490
Chickasaw2400
Guthrie2406
Clayton2373
Cedar2331
Sac2320
Cherokee2222
Grundy2183
Madison2092
Fayette2052
Iowa1971
Harrison1962
Mitchell1860
Howard1856
Humboldt1833
Calhoun1792
Hancock1772
Mills1731
Palo Alto1720
Pocahontas1562
Lucas1536
Monroe15310
Page1500
Cass1482
Osceola1460
Monona1441
Jefferson1351
Appanoose1293
Taylor1271
Union1263
Davis1224
Van Buren1121
Ida1100
Fremont1040
Worth1040
Keokuk1011
Greene990
Montgomery905
Wayne842
Audubon741
Adair681
Decatur660
Ringgold482
Adams330
Unassigned40
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