On March 27, 2020, the president signed the CARES Act, which, among other things, provides broad relief in response to the coronavirus disease 2019 (COVID-19) for federal student loan borrowers whose loans are owned by the U.S. Department of Education (ED). As your federal loan servicer, we are contacting you to explain how this law affects your federally owned loans that we service for ED. 

WHAT YOU NEED TO KNOW 

First, it's important to understand that the provisions of the CARES Act that affect federal student loans are temporary. The changes to your federal student loans that we explain in this communication will end Sept. 30, 2020. 

In addition, the interest rate and status changes apply only to your federally owned William D. Ford Federal Direct Loan (Direct Loan) Program, Federal Family Education Loan (FFEL) Program, and Federal Perkins Loan (Perkins Loan) Program loans. If you have other federal student loans that are not owned by ED and/or have private loans, you'll need to contact the servicers of those loans to discuss potential relief options. 

We've taken the following actions on the federally owned loans we service for you:

• 0% Interest Rate - We changed the interest rate on the loans to 0% for the period March 13, 2020, through Sept. 30, 2020. During this period, you will not be charged interest on your loans.

• Administrative Forbearance - We placed the loans identified in an administrative forbearance for the period March 13, 2020, through Sept. 30, 2020. During this period, you will not be required to make monthly payments on your loans. If your payments are made through auto debit, those debits will not occur while the forbearance is in place. We will report you as current to credit reporting agencies.

Although you will not be required to make monthly payments during this specific administrative forbearance period, payments you would have been required to make between March 13, 2020, and Sept. 30, 2020, will count toward loan forgiveness provided all other qualifying factors are met.

Note: If you choose to make payments during the administrative forbearance period, you may do so; however, you'll need to make those payments manually (not through auto debit). Given the 0% interest rate explained above, any payments you make during the March 13, 2020, through Sept. 30, 2020, period will be applied to paying down the principal amount of your loans after accrued interest from other periods has been resolved.

WHAT YOU NEED TO DO 

Keep this notification for your records. We'll communicate with you in August to help prepare you for Sept. 30, 2020, when the 0% interest rate and administrative forbearance period ends. 

There's no other action you need to take, unless you want to opt out of the administrative forbearance we've placed on your account. If you opt out, we'll remove the administrative forbearance and you'll be required to make monthly payments. Unless you want to continue making payments through auto debit, there is no advantage to you by opting out of the administrative forbearance. The 0% interest rate will remain in effect, and you will not be charged interest through Sept. 30, 2020, whether the forbearance remains in effect or not.