COVID-19: IMPORTANT INFORMATION ABOUT THE STUDENT LOAN INTEREST FREEZE
The student loan interest freeze implemented by the President of the United States only applies to loans that are directly held by the Department of Education. If you make your loan payments to UT-Austin, your loan is NOT directly held by the Department of Education. Therefore, an interest freeze and an automatic forbearance will not be applied to your student loan(s). You are required to continue making your student loan payments as scheduled.
If you are experiencing financial hardship, you may be eligible for an Economic Hardship Deferment, Unemployment Deferment or Forbearance for your Perkins loan(s) depending on your circumstance. Please contact Loan Services for further details at: firstname.lastname@example.org.
If you would like to take advantage of the loan interest freeze benefit and currently have a Federal Perkins loan serviced by the University of Texas at Austin, you may consolidate your Federal Perkins Loan into a Direct Consolidation Loan held by the Department of Education. Please note that you may lose certain loan benefits if you consolidate a Federal Perkins Loan. For more information about Direct Loan Consolidation go to: https://studentaid.ed.gov/sa/repay-loans/consolidation.
Break in Cancelation Service Due to Condition Covered Under The Family and Medical Leave Act (FMLA):
The change allows a break in Perkins teacher cancelation service due to a condition covered by the FMLA, as is currently provided for in the FFEL and DL teacher forgiveness regulations. The regulation also allow for a break in service in the other Perkins cancelation categories due to a condition covered by the FMLA.
Teacher Cancelations: Under the new rule if a borrower is unable to complete an academic year of eligible teaching service due to a condition that is covered under FMLA, the period of qualifying FMLA condition does not constitute a break in teaching service if –
The borrower completes one half of the academic year; the borrower’s employer considers the borrower to have fulfilled his/her contract requirement for the academic year; and the borrower resumes eligible teaching service no later than the beginning of the next regularly scheduled academic year.
For cancelations in all other public service fields, the change states that: if the borrower is unable to complete a year of eligible service due to a condition that is covered under the FMLA, the period of the qualifying FMLA condition does not constitute a break in the required year of eligible service if the borrower completes at least 6 consecutive months of eligible service; and the borrower resumes eligible service no later than six months from the beginning date of the period of the qualifying FMLA condition.
Loan Interest 1098-E forms
are mailed by Jan. 31 of each year to borrowers who paid $600 or more in student loan interest during the previous year. This is interest paid on tuition loans, emergency loans, and Federal Perkins loans.