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Student Loans: Covid-19 Edition

bank college student covid-19 credit & debt finance aid finance goals financial aid loans Jan 11, 2021

If you are a student currently in debt due to loans, etc, it is important to be educated on all rules and regulations associated with loans and debts. Here's what you need to know about the impact of COVID 19 on your federal debt and credit rating, according to a new report. 

At this point, the interest-free repayment freeze applies only to federal student loans owned by the Department of Education or owned by the Department. The suspension of interest payments on student loans applies only to federal loans owned or owned by the federal government or on behalf of the federal government, not to other federal agencies. NSLDs are not listed as private loans, but you can log in to find a list of your federal loans and search them. Lenders are instructing PNC student loan borrowers to call 1-800-233-0557 and offer no additional information on interest rates - a free repayment freeze on private student loans. Discover private student borrowers can call the bank to discuss hardship cases. If you have a private student loan with high-interest rates and need a break from your payments, contact your lender or credit service to find out about options. Contact your lenders and service providers to discuss your situation and ask if you are eligible for a free credit check or other financial assistance programs. 

The next step should be to contact your federal student loan servicer and inform them that you have lost your job. If you are unable to pay your private or private student loan due to a financial emergency related to COVID 19, call the credit service providers to ask what help is available. You can also call your student loan service if you need assistance with a federal loan that is not covered by the CARES Act. If you are not eligible for student loan suspension, try talking to your workplace HR department to find out how they can help you with your student loans and debts during this time. If you are not qualified for a Student Credit Suspension (SLS) and/or Federal Student Assistance Program (FAP), please try to speak to your Human Resources Department or workplace at the time of termination to learn more about their policies and guidelines and how to help you with student loans. 

If you're not sure what to do with your student loans, start collecting your information about federal loans from student aid. Find out your interest rate to see if you could save by refinancing your private student loan. If you are unsure what type of loan you have and you are having difficulty making payments, you can contact your credit service provider for more information or contact us to set up a free advice service for student loans. You may also need to contact a private student assistance provider to discuss possible options, especially if they have access to the Federal Student Aid Program (FAP) and/or the Federal Credit Union. 

If you have federal student loans that are not already eligible for benefits under the CARES Act, you can act as if you were consolidating a loan that is not covered by the law into a federal direct loan. All loans under the government's loan program, including subsidized, unsubsidized and Plus-Plus loans, are eligible for government student loans. This page contains information for all federal student borrowers (including those who are in default on their federal student loans). 

If you take out a new loan to manage your student loans by having them all in one place, you can claim as a direct federal consolidation loan under the CARES Act. 

If you need to combine multiple student loans into one, you can get access to student loan forbearance by opening a direct federal consolidation loan. Federal loans would be automatically suspended if you do not behave in accordance with the terms of the loan under the CARES Act, but there are a number of private loans that are not automatically suspended, including those held by institutions you attended, and private student loans choose Perkins Loans. Private loans in Laurel Road are classed as student debt, while federal loans are not, so think twice before refinancing them. Some commercial lenders have program loans and refinancing private student loans might be a good idea. 

For more information about federal student loans and which loans qualify for forbearance, visit StudentAid. Borrowers who also have federal student debt can get information about coronavirus and student loan relief to stay up to date - until today. We recommend that you regularly review our FSA page, which contains information for all federal student borrowers, including those who are in default on their student loans. You can also learn more about the Federal Student Loan Relief Program (FSA) on our website and on the FSA website. Please note that the provisions of the CARES Act on federal student loans apply to many, but not all. Borrowers who need relief on personal student loans may still get some relief - but it won't be as generous and you will have to apply for it. The student debt relief program is not held by the US Department of Education, so commercial lenders who own program loans or schools that hold Perkins loans are not eligible for this benefit. Please also note that the Student Loan Relief Act does not apply to loans from private colleges and universities or schools that hold Perkins loans, such as those of the University of North Carolina at Chapel Hill or the College of Charleston.