This article originated in 2020 and reflects information relevant to that time. Please refer to our consumer rights pages for up-to-date background on your rights.
Due to COVID-19 and the impact that it will have on consumers financially, multiple businesses, banks and major corporations have announce measures to help those impacted the most. Among those that have laid out plans to help their customers during this pandemic are student loan providers.
Trump announced that borrowers will be allowed to take a break from their monthly payments for at least 60 days. To obtain the 60-day reprieve, borrowers who have federally held loans will have to make a request of their loan servicers, such as Navient, Nelnet or FedLoan Servicing, over the phone or online.
Additionally, many lenders will waive interest on federal student loans until further notice. This an unprecedented acknowledgement by the government of how tightly this pandemic could squeeze Americans’ finances.
Borrowers are not required to do anything for their interest to be waived on their loans. Account adjustment will automatically happen.
Wells Fargo is among the student loan servicers offering to put payments on hold for up to 90 days.
Other loan providers have announced that they will be helping their borrowers, but they have not announced direct measures.
If you have any questions about your specific loan, contact your loan servicer as soon as possible. Your servicer can provide information about deferment or forbearance options.
We can help.
Our firm will be investigating to make sure that these student loan servicers stick true to their procedures to help protect their borrowers during this pandemic. If you or someone you know ends up being impacted negatively by one of these student loan servicers during COVID-19, Maginnis Law is here to assist you.
Maginnis Howard’s consumer law attorneys are committed to help consumers wronged by big corporations. You can reach us by phone at (919)526-0450 or through our contact page.