Students: Relief for privately held student loans, emergency funds public colleges

Loan Forgiveness
April 23, 2020

As students face hardships brought on by the COVID-19 pandemic, the state, along with college and university foundations throughout the Connecticut State Colleges and Universities (CSCU) system have stepped in to assist, launching special programs and making emergency funding available.

Central Connecticut State University Foundation

The foundations are providing emergency aid and other support to make sure CSCU students have access to the food, housing, and technology necessary to continue their education throughout this public health crisis.

For the full list of Colleges and Universities providing aid and other support, click here.

Governor Lamont announces payment relief for student loan borrowers

Under a 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.

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:

An up-to-date list will be maintained on the Connecticut Department of Banking’s website.