 TITLE: How the CARES Act Stimulus Affects Your Student Loans CONTENT: What the CARES Act Means for Student Loans\n------------------------------------------\nThe stimulus package includes provisions to help most student loan borrowers weather the economic storm caused by the COVID-19 pandemic. Here are some of the benefits provided:\n*   All involuntary collections of student loan debt are suspended, including wage garnishments, Social Security garnishments and tax refund offsets.\n*   The U.S. Department of Education will automatically suspend payments on direct loans and FFELs (Federal Family Education Loans) held by the federal government through September 30, 2021.\n*   No interest will accrue during the suspension period, and suspended payments will count toward requirements for the Public Service Loan Forgiveness program and income-driven repayment plans.\n*   The Department of Education will report suspended payments to the national credit bureaus as though they were on-time payments.\n*   Through the end of 2020, employers can provide up to $5,250 toward an employee's student loan debt, and this would not be considered a taxable benefit to the employee.\nIf you qualify for assistance, the suspension of payments is automatic, so you don't have to worry about contacting your student loan servicer. But while you don't need to make payments until at least the end of September, the federal government isn't making those payments for you. As a result, your repayment term will be extended by the duration of the suspension period.\nFor employers, the $5,250 amount is currently what they can provide to employees annually for tuition assistance on a tax-free basis; but it will be the combined limit for tax-free tuition and student loan repayment assistance in 2020. END