Federal Student Loans & the CARES Act

March 26 is when I first did my paycheck budget for my first April paycheck. I’d finally gotten my new student loan payment amount from Navient, even though my income-based repayment recertification was approved January 19, and I learned the payment had gone up $125.

After re-working the numbers to accommodate this change, I managed to get everything paid, but with no money for gas (still sitting on three-quarters of a tank – I can make it the two weeks if I put my mind to it), and only $14.74 left for food (I can make that work – I still have staples in the pantry; it’ll just be lots of oatmeal, water, and peanut butter and jelly sandwiches).

I counted myself fortunate, then sat down to go through some of my planner supplies and see what I could sell or return to bring in a little bit of money at least.

And then we truly begin to feel the effects of COVID-19. 

I am grateful to still be working. I am grateful I can shelter in place. I am grateful I have someone checking on me and making store runs since I am in the vulnerable class and need to limit my interactions with people. I am grateful that I have not yet suffered the loss of a friend or family member from the coronavirus, and that those who have had it seem to be on their way to recovery. I am grateful.

By the end of March, I was hyperfocused on a particular aspect of our government’s response to the pandemic: setting federal student loan interest at 0% and pausing payments for a couple of months. I logged on and was faced with the dilemma of whether I would continue making my (now higher) payments or take the coronavirus forbearance option (which I could not do online, but had to call in and request).  Decisions, decisions.

A few days later, I did not have to debate the choice any longer; the CARES Act 

• gave an end date for the 0% interest rate (September 30, 2020), and 
• automatically put an administrative forbearance on federally-held loans that
  • would NOT automatically capitalize accumulated interest once the forbearance ends, and
  • if you do not make a payment during this time, it will still count as making payments if you are on a income-based, or income-driven repayment plan, or if you are on a public loan forgiveness repayment plan.

Ha-le-lu. 

Once I had that small peace of mind, I went to the grocery store.