BOWLING GREEN, Ky. (WBKO)- The CARE's act, also known as Coronavirus Aid Relief and Economic Security act, was meant to provide financial relief during this pandemic.
As part of the CARE's act federal student loan programs will be suspended.
According to financial professionals everyone with a principal or interest student loan can defer that loan until October.
"This is for federally backed student loans and that is a key differentiation. This is not for private loans and basically they have suspended that program for six months, so no new loan interest will accrue and the payments will automatically go into forbearance, so there will be no new payments for six months unless you choose to make a payment," said Jeanne Fisher, Certified Financial Planner.
Financial experts do recommend if you are still able to make your student loan payments to do so while the interest is being paused for the next 6 months.
"We know if you are going to choose to pause your student loan payments there is nothing that you need to do. We do recommend if you can continue to make payments you might actually get ahead now that the interest is now being pause for the next 6 months. If you do want to continue making payments, I recommend that you check with your service provider to make sure that those stay on schedule," said Fisher.
According to financial experts, this will provide a huge relief to those who have been laid off, providing relief to an estimated 95%.