Part 2: Student Loans & CARES Act

As you might have heard, student loan debts have temporarily been halted. The government isn’t volunteering to pay your debts, it’s just delaying the payments while we all try to get on our feet. If you decide to not pay your federal loans for the next few months, it will NOT effect your credit, as long as you were in good standing before the CARES Act. So whatever you owed in March is (or can be) what you will owe October 1st.

Just because you can take advantage of this doesn’t mean you have to. If you need the break financially, it’s nice to know you can take one. But if your goal is paying off your loans ASAP, then by all means, keep plugging away! If you can afford to, now is actually a great time to throw what you can towards your student loans since it will all go towards the principle. The interest rate has been on “pause” but in October the “play” button will be pushed. So if getting out of debt is a priority of yours, don’t wait until the fall—pay what you can and trim the length off your loan!