Those who live in D.C. and are struggling to pay student loans due to the impact of the coronavirus crisis could see some relief from payment and collection.
D.C. Mayor Muriel Bowser announced Friday an initiative that gives expanded financial relief options to residents paying private education loans — such as commercially-owned Federal Family Education Loan Program loans or other privately-held student loans.
The initiative, launched in the District and several states including Virginia, will give qualifying D.C. residents loan forbearance and other protections.
These 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
- Working with borrowers to enroll them in other borrower assistance programs, such as income-based repayment.
The new initiative fills a gap not covered by the federal CARES Act, which provides relief for those with federal loans but not borrowers whose loans are not owned by the federal government.
Student loan services that are not able to provide relief should work with loan holders to relax restrictions or obligations, the mayor’s office said in a statement.
Twelve private education loan servicers have backed the initiative:
- Aspire Resources, Inc. College Ave Student Loan Servicing, LLC
- Earnest Operations
- Edfinancial
- Kentucky Higher Education Student Loan Corporation
- MOHELA
- Navient
- Nelnet
- Rhode Island Student Loan Authority
- SoFi Lending Corp.
- Tuition Options
- Utah Higher Education Assistance Authority
- Vermont Student Assistance Corporation
If you are having a hard time making payments to your students loan due to the impact of the pandemic, call your loan servicer.
Resources in D.C. include the Department of Insurance, Securities and Banking, where you can contact the student loan ombudsman at DCLoanHelp@dc.gov or at (202) 727-8000, or file a complaint. You can also file a complaint at the Consumer Financial Protection Bureau.
For information on federal loans, visit the Department of Education’s Federal Student Aid or call them at 800-433-3243.
For those with private student loans, check your billing statement for contact information.
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