Student loan forbearance was issued through September during the current pandemic, but has been extended through 2021.
The federal forbearance means you do not need to pay your student loan – and won’t accrue any interest – but as Lisa mentions in a previous FWW, this may be a great time to get ahead on your loans if you have the means in your budget to keep making payments.
There may be a way to lower your federal student loan interest rate after the forbearance is up.
If your loan is through a private lender, reach out and see what they can offer you!
To start qualifying, be sure to stay up on payments on time.
Other qualifying factors for federal interest rate reductions are;
You must have paid your interest payments for the last year.
If married, you must have filed married joint and neither of you are claimed as a dependent of someone else.
Your modified adjusted gross income must be less than the specified amount set.
Your set payment on your loan fluctuates based on your income – so in theory you would earn more over time and will be able to afford a larger payment
Search topic #456 on the IRS website to learn more, or click here.
GHS is always here for you! Stop in to a branch or call us if you need us at (800) 732-4447.
1APR = Annual Percentage Rate. Rates are shown "as low as". Rates and terms are subject to change. The rate and term may vary depending on each individual's credit history and underwriting factors. Credit Union Membership required with a $1.00 minimum deposit and $1.00 membership fee. Rate shown as low as with discount up to .50% for Auto Loans. Rate shown as low as with discount up to .25% for Personal Loans and Home Equity Loans.
2APY = Annual Percentage Yield. Rates are subject to change at any time. Early withdrawal penalties may be imposed on Term Share Accounts. Credit Union Membership required with a $1.00 minimum deposit and $1.00 membership fee.