The department has issued guidance for federal workers faced with student loan payments as the shutdown continues.
1/14/2019 12:30
Unlike some other federal agencies, the U.S. Department of Education (DOE) remains fully funded and student loan servicers are still collecting payments at this time. It also continues to issue grants and federal student loans, MarketWatch reports.
“Still, students, borrowers and schools may experience some hiccups for tasks that require information from another agency experiencing greater impacts from the shutdown, like the IRS,” according to the article.
Justin Draeger, president of the National Association of Financial Aid Administrators, told MarketWatch borrowers “should be operating as if everything is normal and there is no disruption at all.”
At the same time, borrowers with student loan debt whose jobs are impacted by the shutdown may face some struggles.
The DOE issued guidance on paying loans for federal employees without income due to the shutdown.
Options for consumers include:
- Postpone payments through a deferment or forbearance.
- Enroll in or update your income-driven repayment plan.
Consumers should also communicate with student loan servicers if they are impacted by the shutdown and servicers should be mindful of temporary financial hardship consumers are facing and may consider reviewing collection policies while the shutdown continues.
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