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Education Loans

Frequently asked questions:

*Last updated 4/27/2020

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  • What effect will the CARES Act have on student loan payments?

    All student loans owned by the Department of Education have suspended payments and interests until September 30, 2020.

     

    Suspended Loans

    Not suspended Loans

    Federal loans:

    ○      Direct Loans

    ○      Federal Family Educational Loans (F.F.E.L)

    ○      Federal Perkins Loans

    Federal loans:

    ○      Older F.F.E.L. owned by commercial lenders

    ○      Perkins loans owned by the school

     

    Nonfederal (private) loans:

    ○      Any private education loans (Wells Fargo, Sallie Mae, Sofi, Discover, etc.)

     

  • Can I suspend my private loan payments and interest?

    On April 23, 2020, California and other states reached an agreement with 21 out of the 24 largest private student loan companies to offer student loan borrowers a minimum of 90 days of forbearance, waives late fees, and protects against negative credit reporting. However, lenders are not required to suspend interest accrual. Unlike the CARES Act, which automatically suspends payments of student loans, impacted borrowers must contact their loan providers to get relief.

  • Do I have to request the suspension of my student loans?

    For federal student loans owned by the Department of Education, the suspension will take into effect automatically. For private loans, older F.F.E.L. owned by commercial lenders, and Perkins loans owned by the school, you have to request forbearance. Contact your loan provider for additional information.

  • How will the student loan suspension affect my credit score?

    Federal student loan payments are treated on credit reports as if the payments are made. Therefore, non-payments through September 30, 2020 will not negatively impact your credit score.

     


Education Loans References:

 

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* The College of Business Administration ("CoBA") is providing links to these resources as a public service to students. Reference to any specific resource or entity does not constitute an endorsement or recommendation by CoBA. CoBA assumes no responsibility or liability for any errors or omissions; the information contained is provided on an "as is" basis with no guarantees of completeness, accuracy, usefulness or timeliness.