Gov. Lamont announces payment relief for student loan borrowers amid pandemic

Coronavirus

HARTFORD, Conn. (WTNH) — Governor 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 CARES Act. 

Officials said the new initiative will benefit Connecticut residents with privately held student loans.

The federal CARES Act provided relief for students with federal loans; however, 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.

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.
  • Working with borrower to enroll them in other borrower assistance programs, such as income-based repayment.

Participating servicers 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

If a borrower is experiencing trouble with their student loan servicer, they are encouraged to ask to speak to a supervisor and then if still needed, contact the following and file a complaint Connecticut Department of Banking at (860) 240-8170 for information or file a complaint online.

“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” said Commissioner Jorge Perez. “I am 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.”

Residents should check online more information and to see if more loan servicers have been added. 

Copyright 2020 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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