ABSTRACT

Proposals to Extend CARES Act Provisions to Federal Student Loans Not Held by the Department of Education: Frequently Asked Questions [June 10, 2020]   [open pdf - 963KB]

From the Summary: "In response to the coronavirus disease 2019 (COVID-19) pandemic, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act; P.L. 116-136) provides several types of benefits to borrowers of select federal student loans. Perhaps most notably, the CARES Act specifies that through September 30, 2020, interest shall not accrue, payments shall be suspended, and involuntary collection of defaulted loans shall be suspended on loans made under the Direct Loan program, as well as on loans made under the Federal Family Education Loan (FFEL) program that 'are held by the Department of Education.' The Department of Education (ED) subsequently extended these benefits to loans made under the Perkins Loan program that are held by ED. Federal student loans that are not eligible for these benefits include FFEL program loans held by commercial lenders and guaranty agencies (hereinafter, 'commercially held FFEL program loans') and Perkins Loan program loans held by institutions of higher education (hereinafter, 'institutionally held Perkins Loans'). This report addresses frequently asked questions related to commercially held FFEL program loans and institutionally held Perkins Loans and issues Congress might examine should it consider extending loan benefits similar to those provided under the CARES Act to borrowers of such loans."

Report Number:
CRS Report for Congress, R46409
Author:
Publisher:
Date:
2020-06-10
Series:
Copyright:
Public Domain
Retrieved From:
Congressional Research Service: https://crsreports.congress.gov/
Format:
pdf
Media Type:
application/pdf
URL:
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