LANSING, Mich. — People with student loans are getting a break from the state and federal governments during the pandemic.
The Michigan Department of Treasury said it is not collecting payments from people who are behind on their Federal Family Education Loan.
"It's a weight off our shoulders right now," said Zachary Allen.
Allen is just one of thousands of people who have student loans.
As part of the federal CARES Act, federal student loans are now in forbearance. That means they're basically frozen with 0% interest rates so borrowers don't have to pay right now.
"It's one less bill that I don't want to think about right now. My kids' health and education are more important," said Allen.
Allen said his employer cut his hours because of COVID-19.
"Our money can go to more important things right now with just maintaining our regular lives," he said.
But financial planner Kyle Cooper is encouraging people to continue paying those loans.
"It certainly makes sense to continue to pay on those student loans. The reason behind it is every dollar now as you make those payments will be applied to principle," said Cooper.
Crystal Sanderson is doing just that.
"Because I don't want to get behind. I want to get it paid off and get it out from under me," said Sanderson.
She said she's relieved the interest rate is temporarily zero while she's still paying.
"Zero interest means that there's less they are going to charge me. The interest on that loan, because it is so old, has built up so much. My balance is about double what it would've been," Sanderson said.
Cooper recommended people in the Federal Public Loan Relief program to not pay on their loans during this time. That's because their student loans will still be forgiven at the end of the program.
Federal student loan repayment is expected to continue November 1.
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