The CARES Act permits qualified members to defer payments on any QPP or TDA loan for 12 months, as described below:
D1) Who is eligible to defer loan payments under the CARES Act?
To qualify, members must certify that they a) have been diagnosed with COVID-19, b) have a spouse or dependent who was diagnosed with COVID-19, or c) were financially harmed by COVID-19 due to quarantine, furlough, layoff, reduction in work hours, inability to work due to lack of child care, or closure/reduction of hours of their own business.
D2) How do I apply for a loan payment deferral under the CARES Act?
To request this loan payment deferral on an existing loan, you will need to log in to the secure section of our website using your username and password; then go to the E-Forms page, where you will find the QPP Loan Payment Deferral Request and TDA Loan Payment Deferral Request listed. These forms must be completed and submitted online; there is no "paper" version of the form available.
As part of the application, you must choose the specific loan(s) for which you want to defer payments. You'll make this selection by indicating the loan number for each loan. Loan numbers can be found on your paystub, on your quarterly statements, or on your Loans page in the secure section of our website. Note: Requests for deferral of payments on an existing loan must be submitted by December 13, 2020.
D3) How long are payments deferred under the CARES Act, and how does this impact the life of my loan?
TRS provides a 12-month deferral period from the date your application is processed, and 12 months will be added to the term of the loan. Interest and insurance charges will continue during this period, and your loan will be reamortized at the end of the deferral period to incorporate them.
Any missed payments (payments that were already due by the date of application) are not included in the loan payment deferral.
D4) Are there any charges associated with deferring my loan payments under the CARES Act?
No. A $30 service charge is typically applied when members request a reamortization, but that will not apply to these reamortizations related to the CARES Act provisions.
D5) When will my payments stop if I request a loan payment deferral?
The loan payment deferral will take effect with the next available payroll, typically within 30 days.
Due to the processing time, if only a few automatic payments remain on your loan, it may not be possible to implement your request before the loan is fully repaid.
Note for members who are paid on the Department of Education payroll: Because summer paychecks are cut in advance, payroll changes (such as stopping loan payment deductions) cannot be implemented during the summer. Changes requested in early May can generally be implemented before the summer paychecks are cut, but changes requested later cannot be implemented until the first payroll in September or later.
D6) If I defer my loan payments, do I still need to repay my loan within five years of the loan’s disbursement?
No. The five-year repayment term will be extended by the length of the deferral.
D7) If I defer my loan payments, how will my payment amount be affected?
At the end of the 12-month deferral period, TRS will reamortize your loan. When you resume payments, you should expect your payment amount to be higher due to interest that accrued during the deferral period.
D8) If I have more than one open loan, can I request to defer payments on all loans?
Yes. When you apply, you must specify the loans for which you want to defer payments. Requests for QPP loans and TDA loans must be made separately.
D9) Can I resume making regular loan payments before the end of the deferral period?
Yes. If you want to resume a regular payment schedule, you may request this by contacting TRS. Please note that, if you do end the deferral period early, you will not be able to defer payments again for that loan. One deferral request is permitted per loan under the CARES Act.
D10) Can I make a single loan payment during the deferral period?
Yes. You can use the Online Payments feature to make one or more loan payments using an e-check from your bank account, a credit card, or debit card. Any payments you make online will not affect the deferral period, but they will be taken into account when TRS reamortizes your loan at the end of the deferral period.
D11) How long will the option to defer loan payments be available?
Requests for loan payment deferral under the CARES Act must be submitted by December 4, 2020 for new loans and December 13, 2020 for existing loans.