Less than 11% of people with federal student debt are repaying their loans during Covid

Actually, I was wrong to make that blanket statement. Here is how it works: “During the period of 0% interest (March 13, 2020, through Dec. 31, 2020), the full amount of your payments will be applied to principal once all the interest that accrued prior to March 13 is paid.” For students with little (or no, in the case of some subsidized loans) interest, it’s more likely that the money will go to principal.