CARES Act Update

We’re Here to Help.

A Message From Our CEO

On April 5, 2022, the Biden Administration announced that it was extending the pause on federal student loan repayments through August 31, 2022.

This latest development provides federal student loan borrowers with clarity about what’s happening and what their options are.

In practice, this means loan payments, interest, and collections will continue to be paused through August 31, 2022. This affects all loans held by the U.S. Department of Education, but doesn’t impact private loans.

We’ve addressed some of the most frequently asked questions about the announcement on this page. Splash Customer Success team members are available Monday–Friday from 9 a.m. to 9 p.m. EST to answer your calls and emails.

We are dedicated to maintaining strong customer support levels and helping everyone who desires to refinance as best we can. Most importantly, we hope you stay safe and healthy throughout this challenging time.

Signature of Steven Muszynski
—Steven Muszynski, CEO

Common Questions Related to CARES Act and Student Loans

We will update the information here as the situation evolves.

Although your payments will likely resume after August 31 2022, you could still save by refinancing. Federal student loans carry special benefits. If you refinance a federal student loan with Splash Financial, you will no longer be eligible for those benefits such as a COVID-19 temporary interest rate of 0% through August 31, 2022, public service loan forgiveness, economic hardship programs, fee waivers and rebates on the principal. Please feel free to call us at (800) 349-3938 if you have questions. Check your rate without affecting your credit score.1

What did President Biden say about extending the student loan payment freeze?

President Biden’s statement on pausing federal student loan repayments, April 5, 2022

Biden said data from the Federal Reserve suggested that if payments restarted in May 2022, “millions of student loan borrowers would face significant economic hardship, and delinquencies and defaults could threaten Americans’ financial stability.”

“Accordingly, to enable Americans to continue to get back on their feet after two of the hardest years this nation has ever faced,” he said. “My administration is extending the pause on federal student loan repayments through August 31, 2022.”

What happens when federal student loan relief ends?

When the moratorium on federal student loan payments ends, payments and interest rates will likely return to what they were prior to March 13, 2020, when the moratorium was first implemented.

If I refinance today, will my rate ever change?

It always depends on the type of rate you choose. If you refinance today to a fixed interest rate, you lock in the rate for the life of your loan. That means you would have a reliable monthly payment that doesn’t fluctuate. But if interest rates drop, you may be able to refinance again if you qualify. If you refinance to a variable rate, the rate is subject to change.

What happens if I refinance now and then rates change?

If you refinance today and then rates soon change, there is no penalty or fee to refinance again. However, refinancing again may impact your credit score because it will require another hard credit pull.1

Are there any programs to help private student loan borrowers who are experiencing temporary financial problems?

Most private student loan programs offer some options for distressed borrowers to reduce or temporarily suspend their loan payments.

Questions? Please reach out to us.

Our hours are Monday through Friday, 9 am to 9pm Eastern
(800) 349-3938
contact@splashfinancial.com