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U.S. residents who are paying off student loans have been granted a six-month reprieve.
The deferment became official on Friday, when President Donald Trump approved a $2 trillion stimulus bill aimed at easing the economic impact of the coronavirus pandemic in the U.S. The legislation orders lenders to stop accepting payments for federal student loans through September 30th. Instead of allowing interest to accrue over the next six months, the bill specifies that each month of the reprieve should be treated as if "the borrower of the loan had made a payment."
Additionally, the legislation suspends garnishment of wages or tax refunds to reclaim money from borrowers who are behind on student loan payments. The bill does not affect payments to private lenders, who doled out about 12 percent of all student loan money.