Over the past few weeks, renters have received waivers to help them delay their rent payments. On Wednesday, March 25th, Governor Gavin Newsom announced protection for homeowners. He stated that financial institutions have agreed not to report late payments to credit agencies and will not start foreclosure sales or evictions. This week, major banks have stepped in to assist California homeowners with their mortgages.
List of Banks Issuing 90 Day Waivers:
- Wells Fargo
- US Bank
- 200 state-chartered banks and credit unions
Bank of America also committed to a 30 day “pause”, according to Newsom. Newsom is also working with banks on a resolution to ATM and overdraft fees.
Click Here for more information.
Student Loan Relief
You may be able to temporarily stop making your payments.
On March 20th, The Department of Education announced limited relief for most federal student loans.
How The CARES Act Impacts Student Loans:
- Automatically suspends payments on all student and parent loans through Sept. 30.
- During the suspension, no interest will accrue.
- Missed payments will be reported as if they were made.
- All months of suspended payments will count as “qualifying payments”.
- After Sept 30, borrowers will receive communications from their servicer about transitioning back into repayment.
Can I pay my federal student loans if I want to?
Yes. The suspension is automatic, but it’s not mandatory. If you want to keep paying your federal student loans, you can.
Does the CARES Act include any student loan forgiveness?
There is no direct student loan forgiveness in the CARES Act.
“To provide relief to student loan borrowers during the COVID-19 national emergency, federal student loan borrowers can be placed in an administrative forbearance, which allows you to temporarily stop making your monthly loan payment. Contact your loan servicer to find out your specific options.”
Read the Borrower Q & A for more information.
For comments or inquires contact:
Khodadad, Broker, CPA
1930 Contra Costa Blvd.
Pleasant Hill, CA 94523