August 19, 2022


Its all about the school

Beware of Taking a Forbearance for Coronavirus

12 min read

Pull close and pay attention.

Make sure you don’t mistakenly place your federal student loans on forbearance.

If you do, you might miss out on getting your payments covered.

Let me explain.

My friend Ebony hit me up this morning after FedLoan emailed her about taking a forbearance. Being a lawyer, she read the fine print where it said the forbearance wouldn’t count towards any loan forgiveness program. She was confused because she thought the CARES Act said that the forbearance would count towards loan forgiveness.

What FedLoan is doing is confusing AF. They’re offering you the option to voluntarily enroll in an emergency forbearance due to the coronavirus.

What the government has approved under the CARES Act is:

– the suspension of interest on certain federal student loans and
– the paying of your monthly bill on certain federal student loans.

This is totally different from the forbearance FedLoan has listed on its website.

Under the CARES Act, you don’t have to do anything to get the benefits you’re legally entitled to. The government has ordered the Department of Education to pay your interest, pay your monthly, and give you credit towards for those payments to loan forgiveness.

Let me say that first part again: You don’t have to do anything to get those benefits. That will happen automatically.

Voluntarily choosing to enroll in a forbearance may (or may not) stop you from getting those benefits.

Do I know this for sure? No. But what I do know is that it’s super misleading for FedLoan to have an option for you to request a voluntary forbearance 3 days after President Trump signed a law that the government will be making your payments for you on certain federal student loans.

Bruh, it ain’t that hard in 2020 to update your Squarespace site, FedLoan, to provide accurate information to student loan borrowers.


For the nerds, read Section 3513(a) and (c) of the CARES Act for yourself:…/bills/s3548/BILLS-116s3548is.pdf


Source: #1 Student Loan Lawyer | Tate Law

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