What does the stimulus package mean for student loans during the coronavirus pandemic?

Student loan borrowers will get a break on their payments due to the coronavirus pandemic.

The Coronavirus Aid and Economic Security Act, or the CARES Act, pauses payments at no interest for most federal student loan borrowers through Sept. 30, media outlets report.

The CARES Act, the $2 trillion stimulus package signed into law by President Donald Trump on March 27, also allows those who made a payment on or after March 13 to get a refund, Forbes reported.

The package pauses involuntary collection of student loans, including tax refunds, Social Security Benefits and garnishment of wages, according to Forbes.

People who want student loan forgiveness under the Public Service Loan Forgiveness (PSLF) program or income-driven repayment (IDR), each month during the pause will act as though a payment was made for loan forgivness, according to US News & World Report.

If you want to still make payments during the period, you can continue to do so, according to US News & World Report.

The plan doesn’t include private student loans or give any student loan forgiveness, according to Forbes. Senate Democrats wanted a student loan forgiveness plan that would forgive $10,000 for federal student loan borrowers, Forbes reported.

This story was originally published April 2, 2020 at 10:34 AM with the headline "What does the stimulus package mean for student loans during the coronavirus pandemic?."