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Good News for Student Loan Borrowers!

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Shannon Vasconcelos

Written by Shannon Vasconceloson December 7th, 2020

I came to College Coach with close to 10 years of experience in college financial aid offices. I began my career at Boston University, where I counseled students and their parents on the financial aid process and reviewed undergraduate financial aid applications. At Tufts University, where I served as assistant director of financial aid, I developed expertise in the field of health professions financial aid. I was responsible for financial aid application review, grant awarding and loan processing, and college financing and debt management counseling for both pre- and post-doctoral dental students. I have also served as an active member of the Massachusetts Association of Student Financial Aid Administrator’s Early Awareness and Outreach Committee, coordinating early college awareness activities for middle school students; as a trainer for the Department of Education’s National Training for Counselors and Mentors, educating high school guidance counselors on the financial aid process; and as a volunteer for FAFSA Day Massachusetts, aiding students and parents with the completion of online financial aid applications.
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by Shannon Vasconcelos, former financial aid officer at Tufts University Important news for student loan borrowers coming out of the Department of Education this weekend! Secretary of Education Betsy Devos announced the extension of the automatic loan forbearance for federal student loan borrowers through January 31, 2021.  This forbearance was originally granted by the CARES Act and was scheduled to end September 30, 2020. President Trump later extended the forbearance by executive action through December 31, 2020, and Devos’ latest action ensures that struggling borrowers will not need to make payments prior to the new administration taking office in late January. Key points for borrowers include:
  • No payments on federal student loans will be required prior to January 31.
  • No interest will accrue on these loans during this time.
  • No collections activity will be undertaken.
  • Non-payments will count as if payments were made for the purposes of Public Service Loan Forgiveness, income-driven repayment plans, and loan rehabilitation agreements.
Refer to our post, COVID-19 and Student Loans: How to Get Relief, for details and frequently asked questions about the federal student loan administrative forbearance, including why borrowers who can afford to do so may want to continue making monthly loan payments. And stay tuned to the Bright Horizons College Coach Insider Blog for any student loan policy changes to come as they are announced by the Biden administration. Our College Finance Experts


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