COVID-19 Relief for Student Loan Borrowers
Student Loan Relief Under the CARES Act:
The federal Coronavirus Aid, Relief and Economic Security (CARES) Act applies solely to student loans which can be held by the federal authorities, that are the overwhelming majority of student loans issued since 2010. The CARES Act doesn’t apply to federal loans that aren’t owned by the U.S. Government in addition to loans made by personal lenders.
Some federal student loans underneath the Federal Family Education Loan (FFEL) Program are owned by business lenders, and a few Perkins Loans are held by the establishment or faculty you attended. In addition, the CARES Act doesn’t apply to personal (non-federal) student loans owned by banks, credit unions, faculties, or different personal entities.
Connecticut Residents Receive Additional Relief
On April 21, 2020, Governor Ned Lamont and Banking Commissioner Jorge Perez, in collaboration with different states, introduced that Connecticut has secured aid choices with many personal student loan servicers whose debtors aren’t coated by the CARES Act. Under this new initiative, Connecticut residents with commercially owned FFEL Programs or privately held student loans who’re struggling to make their funds because of the COVID-19 pandemic will likely be eligible for expanded aid.
Borrowers in want of help ought to instantly contact their student loan servicer to establish the choices which can be acceptable to their circumstances. Relief choices by way of the servicers listed under embrace:
- Providing a minimal of 90 days of forbearance
- Waiving late cost charges
- Ensuring that no borrower is topic to detrimental credit reporting
- Ceasing debt assortment lawsuits for 90 days
- Working with borrower to enroll them in different borrower help packages, comparable to earnings based mostly compensation.
Additionally, if regulated student loan servicers are restricted of their capability to take these actions as a consequence of investor restrictions or contractual obligations, servicers ought to as a substitute proactively work with loan holders every time attainable to loosen up these restrictions or obligations. The Department encourages prudent and cheap actions taken to assist aid for debtors in the course of the pandemic.
How do I discover out what kind of student loan I’ve?
To decide the kinds of federal loans residents have and who their servicers are, debtors can go to the Department of Education’s National Student Loan Data System (NSLDS) at or name the Department of Education’s Federal Student Aid Information Center at 1-800-433-3243 or 1-800-730-8913 (TDD). Borrowers with personal student loans can test the contact info on their month-to-month billing statements.
If a borrower is experiencing hassle with their student loan servicer, they’re inspired to ask to talk to a supervisor after which if nonetheless wanted, contact the next and file a criticism:
Connecticut Department of Banking – name 860-240-8170 or File an Online Complaint
Consumer Financial Protection Bureau
Private Student Loan Servicers Providing Relief
As of April 21, 2020
- Aspire Resources, Inc.
- College Ave Student Loan Servicing, LLC
- Earnest Operations
- Kentucky Higher Education Student Loan Corporation
- Lendkey Technologies, Inc.
- SoFi Lending Corp.
- Tuition Options
- United Guaranty Services, Inc.
- Upstart Network, Inc.
- Utah Higher Education Assistance Authority
- Vermont Student Assistance Corporation
States becoming a member of this initiative embrace California, Colorado, Connecticut, Illinois, Massachusetts, New Jersey, Vermont, Virginia, and Washington.