Relief for Student Loan Borrowers
Governor Lamont recently announced that Connecticut - in partnership with seven other states - has worked to secure relief for those who have student loans through private lenders and are not covered by the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act.
While the CARES Act provides relief for students with federal loans, it did not provide support to student loan borrowers with loans that are not owned by the federal government, as well as loans received from private lenders.
Governor Lamont's office has provided the following details on 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.
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.
- 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
- 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
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."