COVID-19 and Student Loans

Updated 05/24/2022

In 2020, the CARES Act legislation impacted millions of student loan borrowers by instating administrative forbearance on all federal loan programs. This was originally extended through September 30, 2020; however, under the recent COVID-19 Emergency Relief and Federal Student Aid, student loan payments have been paused through Aug. 31, 2022. For eligible loans, this pause includes a suspension of loan payments (forbearance), 0% interest rate, and stopped collections on defaulted loans.  

During forbearance, there is no obligation to make monthly payments. Additionally, the remaining loan balance will not accumulate interest during this six-month period.

While you are not required to make payments during forbearance, it may be a great opportunity to pay down your loan balance. If you have the ability to continue making payments, you can do so manually.  Because all automatic monthly bank transfers cease with forbearance, you will need to log into your account and pay down your selected amount. By making payments during the forbearance time period, you will reduce the life of your loan and your total interest paid.

If you participate in the Public Service Loan Forgiveness (PSLF) program, the forbearance period applies and payments are not required. This forbearance period will still receive credit toward the loan forgiveness program assuming all other qualifying factors are met.

If you have a loan through any of the federal loan programs, your payments were automatically suspended. Common loan programs include Stafford, Perkins, or Parent PLUS loans. Loans included would be held at one of the servicing companies listed below. It’s important to note that some of these servicers also offer private loans so verify which type you have. The private loans may offer their own forbearance programs, so contact your provider to find out available options.

  • Federal Loan Service Providers
  • FedLoan Servicing
  • Great Lakes Educational Loan Services, Inc.
  • HESC/Edfinancial
  • Aidvantage
  • Nelnet
  • OSLA Servicing
  • ECSI

The CARES Act provides employers the option to pay up to $5,250 of an employee’s student loan debt on a tax-free basis. This provides an opportunity for both you and your employer. You may want to consult with your company to see if this option is available to you.


Marshall Financial Group, Inc (“Marshall Financial”) is an SEC-registered investment adviser with its principal place of business in Doylestown, Pennsylvania.   This newsletter is limited to the dissemination of general information pertaining to Marshall Financial Group’s investment advisory services.  Investing involves risk, including risk of loss.  References to market indices are included for informational purposes only as it is not possible to directly invest in an index. The historical performance results of an index do not reflect the deduction of transaction, custodial, and management fees, which would decrease performance results. It should not be assumed that your account performance or the volatility of any securities held in your account will correspond directly to any comparative benchmark index.

This newsletter contains certain forward‐looking statements (which may be signaled by words such as “believe,” “expect” or “anticipate”) which indicate future possibilities. Due to known and unknown risks, other uncertainties and factors, actual results may differ materially from the expectations portrayed in such forward‐looking statements. As such, there is no guarantee that the views and opinions expressed in this letter will come to pass. Additionally, this newsletter contains information derived from third party sources. Although we believe these sources to be reliable, we make no representations as to the accuracy of any information prepared by any unaffiliated third party incorporated herein, and take no responsibility, therefore.

For additional information about Marshall Financial, please request our disclosure brochure as set forth on Form ADV using the contact information set forth herein, or refer to the Investment Adviser Public Disclosure web site (  Please read the disclosure statement carefully.