In the face of COVID-19, economic challenges have intensified for many student loan borrowers. Depending on the challenges you face, there are different places to go for help – and different programs and resources to provide relief at this stressful time.
What If I’ve Been Furloughed, or I’ve Lost My Job?
First, if you have federally held student loans, there is temporary student loan relief – automatic administrative forbearance and 0% interest – applied to those loans from March 13, 2020 through September 30, 2020. Your federal loan payments are basically paused during this time, offering you relief on those loans while you get your bearings. For these federal loans, interest won’t accrue, and you won’t be required to make payments, until September 30, 2020. (Studentaid.gov provides all your answers to questions about this.)
Private student loans aren’t subject to this requirement of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, so that same assistance may not automatically be available to you for any private student loans you have. You should reach out to your private student loan servicers to see if they’re offering any special forbearance programs to help borrowers. If so, you’ll want to learn about those and apply for any assistance you need that’s available to pause your payments. If not, contact your private loan servicer and be honest about your situation to see what assistance they can offer.
The next step you take should be to contact your loan servicer for your federal student loans, and let them know you’ve lost your job. You’ll want to learn about different payment plans that may make it possible for you to stay current on your loans if you still are unemployed when the temporary forbearance is lifted. Contacting your loan servicer with questions or for help discussing your options is a good idea.
What is U-fi From Nelnet Doing to Help Borrowers Through COVID-19?
Due to COVID-19, many people are sick, quarantined, furloughed or have been let go from their jobs. Loss of income is causing unprecedented numbers of people tremendous additional stress on top of the uncertainty of living with a public health crisis. We understand – and we’re here for our borrowers with relief.
We’re offering a special forbearance that allows our borrowers who have been negatively affected by COVID-19 to temporarily suspend payments on their loans for three months. Interest will continue to accrue during that time. Borrowers can complete the COVID-19 forbearance application, and then upload their completed application through their repayment account.
If you still need assistance after your three-month forbearance is up, you can reapply for the COVID-19 forbearance one additional time. If you’re unemployed after you’ve exhausted six months of COVID-19 forbearance, know that U-fi From Nelnet also offers unemployment protection. This protection includes 24 months of hardship forbearance to provide further payment relief. Contact us to learn more.
U-fi From Nelnet is built on rewarding the hustle and hard work of our borrowers. But we also understand that working during these times may be more difficult than usual for many of our borrowers. We’re here for you, with helpful resources and expert support if you need them.