As a leading institution providing vocational training programs in Bucks County, Pennco Tech understands the importance of making students aware of how the COVID-19 pandemic affects their financial standing. Recent legislation has outlined provisions and relief efforts for small business owners, insurance coverage, tax refunds, and more — including student loans.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act helps most federal student loan borrowers by putting a temporary pause on payments — including principal and interest — on federally-held loans through Sept. 30. In other words, qualified borrowers will not have to make loan payments for these six months, nor will interest accrue.
With that said, here are a few things student loan borrowers need to know about the CARES Act:
For qualified borrowers, this new legislation pauses student loan payments and involuntary collections automatically — giving individuals facing sudden financial hardship one less thing to worry about. Earlier in the public health crisis, federal student loan borrowers were advised to apply for a two-month administrative forbearance. However, the CARES Act replaces the need for this action.
Being aware of this helps avoid student loan scams. You are not required to pay a fee for the temporary pause or interest waiver.
The CARES Act excludes borrowers with Perkins and Federal Family Education (FFEL) loans. These are usually older loans, as these programs no longer exist. Still, many borrowers are repaying them — but will not receive benefits.
If your student loan was excluded from temporary benefits, you might still seek relief by reaching out to your loan servicer to apply for income-driven repayment (IDR) or forbearance.
Each month during the temporary pause will count as if the borrower had completed payment for a loan forgiveness or rehabilitation program.
If you can, you may consider continuing to make student loan payments. In fact, making payments while your student loan is not accruing interest will help you pay off the loan even faster.
For more information about our curriculum offerings, including everything from automotive technology to medical assistant training programs in Bucks County, contact Pennco Tech today!
‘I got it!!!!!I got it!’, Anthony said as he raced into the Career Services Office. He was talking about his new job. Hired by a former graduate of Pennco Tech, Anthony will begin his new career with a two-day OSHA training course.Anthony Z. - Air Conditioning/Heating Graduate
I enjoyed all my teachers. They made it interesting and challenging. I enjoyed going back to school at the age of 48! Career Services was a big help to me. Danielle was great. She helped me with my resume and showed me how to apply. I got the job with Dietz and Watson! Pennco Tech was the right choice for me as I get ready to start my career.Mark E. - Electrician Graduate
I just wanted to say thank you again for all your help…I just got a full time job at Kennedy Healthcare in Stratford, NJ as a Patient Services Representative. Thank you again.Maria Z. - Medical Assisting Administrative Graduate