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Most student loan payments are suspended

Excerpt from report on April 3, 2020

The US government is automatically suspending payments and waiving interest on federal student loans for six months, providing immediate relief for more than 20 million people currently paying off their debt.

But the change, which was included in the $2 trillion economic stimulus package signed into law last week by President Donald Trump, came fast and it's taking some time for some loan servicers to update their guidance.

It's creating some confusion for borrowers, many of whom may be newly unemployed and in need of relief. Part of the uncertainty stems from the fact that the President first announced a similar, but more limited, debt relief plan for borrowers. Two weeks later, the congressional legislation extended the forbearance period from 60 days to six months and made the suspension of payments automatic.

The Department of Education has also announced that the waivers would be implemented retroactively to March 13. Any borrower who has made a payment since then can request a refund.

Still, the student loan repayment system is complex. Here's what you need to know about who qualifies and how it works with existing loan forgiveness plans:

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