By Tal Axelrod
A measure that will suspend federal student loan payments for six months is part of the sweeping coronavirus stimulus package that President Trump signed into law Friday afternoon.
As part of the legislation intended to blunt the economic fallout of the coronavirus pandemic, the measure mandates that lenders cease all payments on the loans through the end of September.
Interest will not accrue and non-payment will not impact credit scores in the interim period.
The law also requires lenders to alert borrowers that the payments have been suspended within 15 days of the bill’s signing and resume alerts on August 1 that the payments will resume.
People still can choose to pay down the principal on their loans over the next six months.
Private student loans, which account for roughly 12 percent of all education loans in 2018-2019, according to the College Board, are not impacted by the law.