In order to bring aid to those who struggle during the coronavirus crisis, President Trump has taken significant steps to ease the burden of student loan payments on borrowers. On March 13, he announced that interest on student loans would be waived “until further notice” and on March 20, he went further by suspending student loan payments until September 30, 2020.

If you have questions about what this could mean for your student loans, read on. Below are some answers to the main questions surrounding these new measures.

How to take advantage of the student loan interest exemption

There are several ways to take advantage of the student loan interest relief. On the one hand, as explained above, you can continue to make payments on your loans without interest. However, there are other options available to you as well. They are as follows:

Refinancing

On the other hand, now is the time to consider refinancing. Student loan interest rates are insanely low right now, thanks to multiple rate cuts. If you can refinance, it may be a good idea to lock in at an affordable rate and lower your monthly payment.

Public student loan cancellation

Moreover, those who try to public student loan forgiveness will be happy to know that, even if they suspend their student loan payments for the authorized six-month period, those payments will still count towards the 120 monthly payments required for the federal student loan. Since the legislation is so recent, your lender may not have updated the information on it yet, but it’s a good idea to keep checking for updates.WHAT HAPPENS WHEN THE PERSON YOU COIN DOES NOT PAY?

Income-based repayment plans

As with the cancellation of public student loans, even if you put your payments on hold during the coronavirus, they will count towards your 20 or 25 years or payments, which are required under your income based repayment plan.

Which student loans are eligible for suspension and waivers?

Suspension and waivers only apply to student loans owned by the federal government. This means that if you have private student loans, as well as some Federal loans for family education (FFEL) and Perkins loans, they may not be eligible.

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If you are not sure if your federal loans qualify, your best bet is talk to your loan manager to talk about your options. If you are currently having difficulty making your payments, it may be a good idea to try consolidating your non-qualifying loans into a direct consolidation loan, which falls under federal jurisdiction.

Those with private student loans should also be aware that the Coronavirus Aid, Relief and Economic Security Act (CARES) allows your employer to help you pay off your student loans up to $ 5,250 this year. If you’re having trouble making your payments, it may be helpful to contact your loan officer to discuss this option.

How it affects your student loans

If you are able to keep paying off your student loans during this time, it makes financial sense to do so. While these measures won’t change the amount you are expected to pay monthly on your student loans, they will affect how your payment is distributed, which can save you money in the long run.

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Essentially, every time you make a payment for your loans, part of that payment goes to pay the interest accrued on the loan and the rest goes to repay the loan principal, or the amount you borrowed.

Since no new interest accumulates on your loans during this time, you have a chance to move forward. If you continue to make payments on your loans, part of your payment will go towards paying off previously accrued interest, and then the rest will go towards your loan principal amount.

Over time, you’ll be able to pay off more of your principal balance than if interest had continued to accumulate, which means you’ll be able to pay off your student loans faster.