14 Jun Just what power will the fresh new Secretary use to prevent the accrual off focus having And additionally mortgage individuals while others?
8/ Inform : ED has clarified that it will count the time period during the payment suspension under the presidential memorandum towards the 120 payments required by PSLF.
They directs brand new Assistant in order to capitalize the eye you to accrues during that sort of deferral to own Along with, unsubsidized Stafford, and some Direct Consolidation funds
5. However, the provision of the HEA that the presidential memorandum cites, 20 USC § 1087e(f), only allows for an interest suspension for Federal Direct Stafford Loan and some Direct Consolidation loans. We do not know what authority the Secretary will use to stop interest from accruing on these types of loans.
six. Exactly how will ED determine which individuals “wish to remain and work out education loan costs”? Often this rescue become an opt-into the or choose-aside provision? The presidential memorandum states that “[a]ll persons who wish to continue making student loan payments shall be allowed to do so,” but provides no guidance for the Secretary regarding how to distinguish which borrowers wish to continue making payments from those who do not.