Struggling during the pandemic? COVID-19 financial relief and protections extended
February 01, 2021 / Source: CFPB
The federal government is extending relief and protections for many student loan borrowers, renters, and homeowners who are having trouble making payments during the COVID-19 pandemic.
Keep reading to learn more about these important updates that may help you. But, remember the COVID-19 pandemic and relief efforts continue to change and develop. Check our COVID-19 webpage for more information.
Payments suspended for federally owned student loans
Principal and interest payments on federally held student loans are automatically suspended through September 30, 2021.
If you have federally owned student loans, you don’t need to contact your student loan servicer or take any action. However, make sure your servicer has your up-to-date contact information and continue to check your mail or email for updates or information about your loans.
Suspended payments through September 30, 2021, will count towards any student loan forgiveness programs, as long as all other requirements are met.
SECOND ROUND OF FINANCIAL RELIEF THROUGH ECONOMIC IMPACT PAYMENTS
In December 2020, the federal government extended additional financial relief to millions of Americans through a second round of stimulus payments, also called Economic Impact Payments (EIPs). The IRS began issuing payments of $600 a person in December to eligible individuals.
Protection from evictions for renters
The Centers for Disease Control and Prevention (CDC) has announced an extension to their current order that halts certain residential evictions . The extension stops evictions until at least March 31, 2021.
If you already get rental help from HUD, and your income has changed, ask for income recertification.
Mortgage relief protections and options
For mortgages backed by some government agencies, the deadline to request an initial forbearance is February 28, 2021. Others may not yet have specified a deadline or may have specified a later date.
For borrowers with mortgage loans through FHA or USDA, your lender or loan servicer cannot foreclose on your home until after March 31, 2021.
For those with mortgages backed by the VA, Fannie Mae, or Freddie Mac, the foreclosure moratorium has been extended through February 28, 2021.