​​​​​​SOUTH CAROLINA ORGANIZATION OF RURAL SCHOOLS

 

Important Fed Update

Today, in his daily press conference with members of the Coronavirus Task Force, President Trump announced that Secretary DeVos was taking some additional actions to support students, educators, and schools impacted by COVID-19. 

First, the Secretary announced that students impacted by school closures due to the pandemic can bypass standardized testing for the 2019-20 school year.  Upon a proper request, the Department will grant a waiver to any state that is unable to assess its students because of the ongoing national emergency, providing relief from federally mandated testing requirements for this school year.  Many states have closed some or all schools.  Therefore, any state unable to assess its students may seek a waiver from federal testing requirements by completing a form.  At the Secretary’s direction, the Department has dramatically streamlined the application process to make it as simple as possible for state leaders who are grappling with many complex issues. 

Since student performance, as measured by assessments, is required to be used in statewide accountability systems, any state that receives a one-year waiver may also receive a waiver from the requirement that testing data be used in the statewide accountability system because of the ongoing national emergency. 

Second, the Secretary announced that Federal Student Aid (FSA) is executing on the President’s promise to provide student loan relief to tens of millions of borrowers during the national emergency.  All borrowers with federally held student loans will automatically have their interest rates set to 0% for a period of at least 60 days.  In addition, each of these borrowers will have the option to suspend their payments for at least two months to allow them greater flexibility during the national emergency.  This will allow borrowers to temporarily stop their payments without worrying about accruing interest. 

The Secretary has also directed all federal student loan servicers to grant an administrative forbearance to any borrower with a federally held loan who requests one.  The forbearance will be in effect for a period of at least 60 days, beginning on March 13, 2020.  To request this forbearance, borrowers should contact their loan servicer online or by phone. 

And, the Secretary has authorized an automatic suspension of payments for any borrower more than 31 days delinquent as of March 13, 2020, or who becomes more than 31 days delinquent, essentially giving borrowers a safety net during the national emergency. 

Some borrowers may want to continue making payments, like those seeking Public Service Loan Forgiveness (PSLF) or those enrolled in a repayment plan with a manageable monthly payment.  For borrowers continuing to make payments, the full amount of their payment will be applied to the principal amount of their loan once all interest accrued prior to March 13, 2020, is paid.  The Department is working closely with Congress to ensure all student borrowers, including those in income-driven repayment plans, receive needed support at this time. 

A borrower who has experienced a change in income can always contact their loan servicer to discuss lowering their monthly payment.