The state says nearly 300,000 borrowers are facing financial hardship due to the coronavirus pandemic.
NEW YORK – New York State has struck a deal with the private sector for student loans to provide relief for borrowers.
Governor Andrew Cuomo made the announcement on Tuesday. The New York State Department of Financial Services says nearly 300,000 borrowers are facing financial hardship as a result of the coronavirus pandemic.
Among those who agree with the relief are Navient, Nelnet, the Pennsylvania Higher Education Assistance Agency (PHEAA), the Missouri Higher Education Loan Authority (MOHELA), EdFinancial and others, which account for about 90 percent of the loans. private students in New York.
“At a time when many are suffering financial hardship from COVID-19, it is imperative that all regulated industries work with consumers to provide relief,” said Superintendent Linda A. Lacewell. “We appreciate the largest student loan departments and lenders in New York and across the country who have come up with a thoughtful plan to help New York student loan borrowers.”
New Yorkers with private loans who are affected by COVID-19 should contact their student loan service request for relief, which includes:
- Offer a minimum of 90 days of forbearance relief to borrowers
- Elimination of late fees for borrowers
- Make sure that no borrower is subjected to a negative credit report
- Stop debt collection proceedings for 90 days
- Work with eligible borrowers to enroll them in other applicable borrower assistance programs
To read a copy of the Department of Financial Services letter to student loan officers, Click here.
For more information on student loan relief, Click here.
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