CARES Act update extends freeze on student loan payments and interest until January 2022
Earlier this month, the Department of Education announced the freeze on federal student loan payments will extend through January 2022. The department said this would be the “final extension” of the moratorium, which began in March 2020 as part of the CARES Act.
As the end of the extension approaches, the AOA remains committed to providing guidance and assistance for members who are navigating the student loan marketplace. Read on for helpful tips from AOA Value partners specializing in medical student loan repayment and forgiveness.
DWOQ provides hands-on consulting services for medical students and physicians seeking the use of federal programs, such as income-driven loan repayment or Public Service Loan Forgiveness (PSLF).
According to DWOQ experts, the CARES Act extension will count toward both PSLF and income-driven repayment forgiveness, so voluntary payments are not needed during this time. Also, unless a physician has experienced a loss or reduction of income, there’s no need to recertify an income-driven repayment plan until next year. DWOQ is also monitoring the impact of FedLoans exiting the federal servicing business. More information is available on the DWOQ blog.
AOA members receive a 25% discount on an initial consultation with a DWOQ specialist, as well as a free loan refinancing suitability analysis.
Members have exclusive access to the AOA PSLF jobs board, which is dedicated to student loan borrowers and qualified employers looking to recruit and retain talent through student loan forgiveness.
AOA Members can set up a job seeker profile and search only PSLF-qualified jobs.
According to SoFi financial advisors, physicians need to be aware that today’s low-interest rates are expected to rise in the next few months. Those with private student loans who have not been eligible for the freeze on payments should investigate whether they can save by refinancing with today’s low rates. In addition, the January timeframe for expiration of CARES Act benefits may be a good time for those who have federal student loans to refinance.
SoFi provides AOA members, including residents, a 0.25% rate discount when refinancing student loans. For those with federal student loans, SoFi offers “SoFi Snooze,” which allows AOA members to lock in a low rate today without giving up benefits of the payment moratorium, including no interest until the student loan is disbursed on Dec. 20 and no payment until February 2022. Before the loan is disbursed, AOA members may opt to modify the loan amount (in the event there is any student loan forgiveness) or cancel to stay federal. SoFi offers a dedicated customer support hotline specifically for healthcare workers. AOA members are eligible to schedule a 30-minute session to discuss their application with SoFi.