Andrew Cuomo, New York's Democratic governor, announced the state will offer relief to 300,000 borrowers who took out private student loans. Those borrowers were excluded from the $2.2 trillion federal stimulus bill, which allowed most other student loan borrowers to avoid making payments for six months, without interest. Senator Elizabeth Warren and 11 of her Democratic colleagues this week wrote to private student loan companies to call on them to offer help to borrowers.
In an agreement the state reached with Navient, Nelnet and other lenders that comprise 90 percent of private student loans, borrowers who face financial hardship borrowers facing financial hardship due to the pandemic may contact their student loan servicer to defer payments for 90 days and receive other relief, including no late payment fees and no negative data reported to credit bureau agencies.
As many as 300,000 New Yorkers may get help with loans under the agreement.
“At a time where many are suffering financial hardship due to COVID-19 it is imperative that all regulated industries work with consumers to provide relief,” Linda A. Lacewell, superintendent of the state's Department of Financial Services, said in a statement. “We appreciate the largest student loan servicers and lenders in New York and the nation stepping forward with a thoughtful plan to help New York student loan borrowers.”
The announcement follows New York's move to temporarily halt collection of student debt owed to the state and referred to the Attorney General for collection, for at least a 30-day period.
from Inside Higher Ed | News https://ift.tt/2Rk918y https://ift.tt/eA8V8J
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