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Information Center for Student Loans & Coronavirus

student loan

The coronavirus pandemic has created a lot of uncertainty for everyone, including student loan borrowers. You’re not alone if you’re wondering what effect the outbreak will have on your loans. Here’s what you need to know.

What is coronavirus?

The coronavirus, also known as the Covid-19 virus, is a common problem that student loan borrowers face. However, knowing where to start when finding information about this issue can be challenging.

The Covid-19 virus is a coronavirus that was first identified in 2019. It has since caused widespread outbreaks across the world. As of March 2020, there have been over 182,000 cases reported and over 7000 deaths attributed to the virus. Most cases are located in Asia, Europe, and North America.

How does the Covid-19 virus affect student loans?

The impact of the coronavirus on student loans will largely depend on the type of loan you have.

The Covid-19 virus can have a significant impact on your student loans. If you are infected, you may be unable to continue making payments or face other repercussions. 

If the virus causes widespread school closures, it could delay your graduation and increase the amount of time you spend in repayment. Therefore, it’s essential to be aware of these risks and take steps to protect yourself and your loans.

What should I do if I am infected with the Covid-19 virus?

If you are infected with the Covid-19 virus, there are several things that you can do to protect yourself and your student loans. Contact your student loan servicer as soon as possible, but here are some things that you need to do for your loans in case you are infected with the virus:

Private Loans

For private student loans, you will need to contact your lender directly. They may be able to put a hold on your loan payments or provide other assistance. Additionally, you should consider that you may be eligible for income-driven repayment plans if you cannot make regular payments. This could help limit the interest on your loans when you cannot make payments.

Taking these steps can help protect your health and student loans in the event of an infection. If you think you may be infected, it is essential to act quickly! It’s recommended that borrowers visit their doctor or local hospital if they believe themselves at risk for the virus.

If you feel overwhelmed by your student loans or have any other questions about the Covid-19 virus and its impact on your loans, please don’t hesitate to reach out to us for help. We are here to support you through this difficult time.

Federal Loans

If you have a federal student loan, it is likely that your service has already been notified and can help guide you through the process of protecting yourself from the virus.

Federally held student loans

Federally held student loans have a few different options when it comes to repayment. You may be eligible for an income-driven repayment plan, deferment, or forbearance on your loans. These options can help you continue progressing on your student loan debt while also dealing with the financial challenges of the virus.

The government has also implemented a few relief options for those with federal student loans. These include waiving late fees, suspending debt collection activities, and providing interest-free periods on your loans.

If I am infected with Covid-19, will my loans default?

No! You do not need to worry about automatically defaulting on loans if you contract Covid-19. However, other consequences may be associated with an inability to make payments on time due to contracting the virus (i.e., late fees).

Are all student loans suspended?

No. While your federal student loans are protected from the Covid-19 virus, some borrowers have reported difficulties making payments on their private or alternative loans while infected. If you have a private or alternative loan, contact your lender for more information about how this issue may affect you and what steps you can take if it impacts you.

At this point, the interest-free halt to repayment only applies to federal student loans owned by the Department of Education. This covers most government-issued loans, but note that some Federal Family Education Loans (FFELs) are commercially held, and your college owns some Perkins loans. 

Remember that federal student loan payments are not affected. Federal loans are guaranteed by the government and will not default if you cannot pay.

What should I do if my school closes due to Covid-19?

If your school closes due to Covid-19, there are several things that you can do to protect yourself and your student debt. First, contact your loan servicer as soon as possible. They will help you understand your options and how to proceed. There are a few things that you may be able to do, including:

  • Transferring to another school

  • Delaying your graduation

  • Continuing your education online

Each situation is different, so it’s essential to contact your provider for more information and guidance.

Can we refinance student loans during the pandemic?

Yes! You can refinance your student loans during the pandemic. Several lenders are still accepting applications, and special offers may be available to those looking to refinance their loans. It’s crucial to compare rates and terms from different lenders to find the best option for you.

What should I do if I am having trouble making my payments?

If you cannot make your payments due to Covid-19, please reach out to your loan servicer as soon as possible. They will work with you to create a monthly payment plan that fits your current situation. Additionally, they may be able to waive late fees or interest charges. Stay calm, and don’t hesitate to reach out for help.

Can I still get my degree if I can’t go to school?

Yes! You can still get your degree if you can’t go to school. Many schools are offering online courses and alternative ways of completing your degree. Contact your school’s admissions office to learn more about their offerings.

In conclusion

If you’ve got the coronavirus while paying for a student loan, don’t panic. However, do reach out to your loan servicer for more information about how this issue may affect you and what steps you can take if it impacts you. Don’t forget that federal student loan payments are not affected, so contact your school’s admissions office or transfer department to learn more about their offerings. EdFed is here for you if you need assistance refinancing your student loans! You can contact us by sending out an email or calling our hotline.

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