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Student loan interest with Cares Act, March 13, 2020

Started by Ehtico, May 04, 2022, 12:02:05 pm

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Ehtico

Good afternoon!
My story with student loans started on August 1996;I graduated from FIU with a BSCV at the age of 40. My debt was 39K at the time, I refinaced the debt on 2003 because I was choking. I have had multiple forbearances through out the years; I am currently 66 years old and owe 70k and I am on Social Security, needless to say I never got my Engineering license and just bought myself a job with alot of debt by going back to school. I am going to try to pass the two state tests to get the PE license so I can go back to work to try to make my economics work. My question today is regarding the Cares Act and how Navient is charching me 11.5K in interest from 3/20 to 3/21? I was under the impression that we did not have to accrued the interes in that period. If anyone can shed some light on how or why Navient still can charge some interest please let me know your thoughts. Thank you!!

TheCollegeInvestor

Based on your story and loan age, you either have a private loan (because you said you refinanced), or you actually meant you consolidated, and you still have old FFEL loans. These loans did not qualify for the CARES Act forbearance. Only Direct student loans qualified, which originated after 2007.

MtnMusicMama75

If you were in an Income Driven Repayment option and chose the forbearance option that was so graciously being extended to borrowers during Covid (set to expire next month!)...going into forbearance actually triggers the addition of all interest that was being held off by the IDR payment plan.  Does that fit your scenario?
I too had about 6K added to my account because I did what was offered without knowing the full consequences. NAVIENT WAS THE WORST.
STAY IN IDR repayment plans FOREVER, and then your loans will be FORGIVEN after 20 OR 25 years depending on which plan you pick. Even if you HAVE to go to forbearance, and interest is added, you need 240 QUALIFYING Payments under an IDR, and then your loans can be forgiven. Its about 60% success rate from what I read, but as we all know, with government run stuff, the devil (and ALLLLL his demons) are in the details!!
Good luck.