Student And Borrower Relief Under The CARES Act

In addition to providing institutions relief from certain federal student aid requirements, as discussed in our previous post, the CARES Act relaxes requirements for certain students and borrowers. This post highlights those provisions.

There are four key categories of relief for current students:

• SAP: Credits that are attempted but not completed due to the COVID-19 pandemic may be excluded from a student's SAP calculation without an appeal.
• Loan and overpayment cancellations: ED will cancel a student's Direct Loan repayment obligation for a payment period for which student withdraws due to the COVID-19 pandemic. In addition, students who withdraw due to the COVID-19 pandemic are not required to return the amount of any overpayment to ED.