Loan Repayments Admist COVID-19

[JOH]

Hi all-

Has anyone heard of IRS allowing or planning to allow deferments to plan loan payments or modification to plan loans in the midst of COVID-19?  We have some clients asking that we modify their loans to a lower rate and defer payments but I couldn't find anything that allowed them to do it.  

[Peter Gulia]

Some lobbying groups presented ideas of this kind to Congress.

From what I read in the news, one doubts Congress will act in this business week.

[JOH]

Thanks Peter.  I reviewed the CARES Act after posting this.  Looks like if the CARES Act passes in it's current form, a Participant will be able to defer loan payments for 1 year.

[Larry Starr]

6 hours ago, JOH said:

Hi all-

Has anyone heard of IRS allowing or planning to allow deferments to plan loan payments or modification to plan loans in the midst of COVID-19?  We have some clients asking that we modify their loans to a lower rate and defer payments but I couldn't find anything that allowed them to do it.  

We have to wait for Congress to get off its collective ass!  This (and other issues) are on the agenda for the legislation.