CARES Act suspends student loan payments

Payments on federally backed student loans, including interest, are suspended until Sept. 30.

Anyone with an outstanding student loan can breathe a short sigh of relief during the coronavirus crisis. The CARES Act, signed into law last Friday, not only delays student loan payments, but provides partial forgiveness. Here’s how it works.

Payments suspended. Payments on federally backed student loans, including interest, are suspended until Sept. 30. Reminders of when student borrowers will have to make their next payment will start going out on Aug. 20.

Loan forgiveness. From now until Sept. 30, no interest will be charged on the balance of a student loan, and the loan balance will be reduced each month as if a payment had been made.

There’s good news for restaurant employers, too. Restaurants that are making student loan payments on behalf of employees can temporarily deduct the entire amount as a charitable contribution.