The federal government also lowered the
interest rate on all federally held student loans
to 0%. However, that will not lower the monthly
payment; instead it will apply the payment
entirely to the principle balance.
The government has also temporarily halted
collections and wage garnishment for borrowers
who’ve fallen behind on their federal student
loans. It has instructed private collection
agencies to follow suit.
If you have private student loans, contact your
servicer for their repayment options.
BUDGET
It’s time to cut any non—essential expenses,.
That means ending your gym membership and
trimming phone or internet plans. Daycare or
monthly commuting passes might be paused or
lowered during unemployment.
Consider extra work if you can to bring in
income. If you still come up short, stay calm.
“Companies are rolling out programs to help
with missed or late payments,” said Kristin Pugh,
a certified financial planner. “If you can’t make
a payment or can only make a partial payment
you need to be proactive and reach out.”
FPA is offering free financial guidance
to Americans in need. A nonprofit credit
counseling agency can also provide low
cost help managing debt and creating a
household budget.
If necessary, consider seeking aid for basic needs
such as food and shelter. Or consider local food
banks, which have more leniency in who they
can help. United Way and 2-1-1 can also help