CT Coronavirus: Payment Relief For Student Loan Borrowers: Lamont

CONNECTICUT — Gov. Ned Lamont and Banking Commissioner Jorge Perez, in collaboration with other states, announced that Connecticut has secured relief options with many private student loan servicers whose borrowers are not covered by the recently adopted federal CARES Act. This new initiative will benefit Connecticut residents with privately held student loans.

While the CARES Act provided relief for students with federal loans, it did not address millions of student loan borrowers with federal loans that are not owned by the U.S. Government, as well as loans made by private lenders.

“So many of our residents are facing unprecedented financial hardship, and our young people are burdened with additional student loan debt,” Lamont said. “I applaud the Banking Department and the student loan servicers for launching this initiative to provide much needed relief to the young people of our state who are not covered by the CARES Act, as well as their families.”

“Student loan borrowers, regardless of whether or not they are federally guaranteed, who are having trouble making their payments should immediately reach out to their servicers to discuss what options best suit their needs,” Perez said. “I’m pleased that we were able to work with our student loan servicers as well as other states to bring this initiative to the people of Connecticut.”

Under this new initiative, Connecticut residents with commercially owned Federal Family Education Loan Programs or privately held student loans who are struggling to make their payments due to the COVID-19 pandemic will be eligible for expanded relief. Borrowers in need of assistance should immediately contact their student loan servicer to identify the options that are appropriate to their circumstances. Relief options through the servicers listed below include:

• Providing a minimum of 90 days of forbearance;
• Waiving late payment fees;
• Ensuring that no borrower is subject to negative credit reporting;
• Ceasing debt collection lawsuits for 90 days; and
• Working with borrower to enroll them in other borrower assistance programs, such as income based repayment.

Additionally, if regulated student loan servicers are limited in their ability to take these actions due to investor restrictions or contractual obligations, servicers should instead proactively work with loan holders whenever possible to relax those restrictions or obligations.

The Department of Banking encourages prudent and reasonable actions taken to support relief for borrowers during the pandemic. To determine the types of federal loans residents have and who their servicers are, borrowers can visit the U.S. Department of Education’s National Student Loan Data System (NSLDS) or call the Federal Student Aid Information Center at 1-800-433-3243 or 1-800-730-8913 (TDD). Borrowers with private student loans can check the contact information on their monthly billing statements.

If a borrower is experiencing trouble with their student loan servicer, they are encouraged to ask to speak to a supervisor. If assistance is still needed, they can contact the following and file a complaint: Connecticut Department of Banking: 860-240-8170 for information or file a complaint online, or contact The Consumer Financial Protection Bureau.

Private student loan servicers providing relief under this initiative include:

· Aspire Resources, Inc.
· College Ave Student Loan Servicing, LLC
· Earnest Operations
· Edfinancial
· Kentucky Higher Education Student Loan Corporation
· Lendkey Technologies, Inc.
· MOHELA
· Navient
· Nelnet
· SoFi Lending Corp.
· Tuition Options
· United Guaranty Services, Inc.
· Upstart Network, Inc.
· Utah Higher Education Assistance Authority
· Vermont Student Assistance Corporation

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Additional private student loan servicers may be added. An up-to-date list will be maintained on the Connecticut Department of Banking’s website at www.ct.gov/dob.