Loans and Loan Repayment

I heard that during COVID my federal student loans will have a 0% interest rate. Is this true? 

 

In light of COVID, all defaulted and non-defaulted Federal Direct, FFEFL, and Perkins loans will have a 0% interest rate between March 13-September 30, 2020. For more information, please visit studentaid.gov or contact your loan servicer. (If you are able to make payments on your loan during this time, the full amount of your payments will be applied to the principal of your loan if all interest accrued prior to March 13 has been paid.)


 

I have graduated and my grace period is almost over, but due to COVID I cannot make payments. What should I do? 

 

In light of COVID, all federal loans have been placed in administrative forbearance between March 13-September 30, 2020. For more information, please visit studentaid.gov or contact your loan servicer. (If all other requirements are met, suspended payments will count toward Income-Driven Repayment plans and the Public Service Loan Forgiveness Program. Auto-debit payments have been suspended.)


 

I have graduated and my loans were in repayment, but I cannot make payments due to COVID. What should I do? 

 

In light of COVID, all federal loans have been placed in administrative forbearance between March 13-September 30, 2020. For more information, please visit studentaid.gov or contact your loan servicer. (If all other requirements are met, suspended payments will count toward Income-Driven Repayment plans and the Public Service Loan Forgiveness Program. Auto-debit payments have been suspended.)


 

I have COVID related questions about my loans that aren’t answered here. Who should I contact? 

 

Our counselors can help with general questions you might have about your loans and any changes or allowances due to COVID, just call (828-262-2190) or email financailaid@appstate.edu. You can also find more information at studentaid.gov or, if your loans have entered repayment, by contacting your loan servicer. 


 

I have private educational loans, but due to COVID I cannot make my payments. What should I do? 

 

Reach out to your lender. Many, many lenders are working with students and families impacted by COVID. Let them know that you are having difficulties making your payments and ask what options you have. They may be able to suspend your payments through a forbearance  or adjust the amount of your payments. Be sure to understand how doing so will impact your loan. Ask if there will be fees, a change to your interest rate, or an increase to the length of your repayment. All these could increase how much you repay on the loan throughout the life of the loan.