Effingham, IL -(Effingham Radio)- State Rep. Blaine Wilhour (R-Beecher City) is echoing the announcement today that borrowers, impacted by the coronavirus emergency and who need temporary relief, should consider the new programs through the Illinois Department of Financial and Professional Regulation (IDFPR). These relief options, available through twenty private student loan servicers, stand to benefit over 138,000 Illinoisans with privately held student loans.
“These are not programs to shirk the responsibility to repay your loans, but options to help ease the temporary financial pressures for people trying to pay rent, buy medicines and keep food on the table for their families,” commented Rep. Wilhour.
The federal CARES Act provided some relief for students with federal loans, including the suspension of monthly payments, interest, and involuntary collections activity until September 30, 2020.
Under this new initiative, Illinoisans with commercially-owned Federal Family Education Program Loans or privately held student loans who are struggling to make their payments due to the COVID-19 emergency must immediately contact their student loan servicer to identify the options that are appropriate to their circumstances. Relief options include:
- Providing a minimum of 90 days of forbearance
• Waiving late payment fees
• Ensuring that no borrower is subject to negative credit reporting
• Ceasing debt collection lawsuits for 90 days
• Working with borrower to enroll them in other borrower assistance programs, such as income based repayment.
To determine the types of federal loans they have and who their servicers are, borrowers can visit the Department of Education’s National Student Loan Data System (NSLDS) at nslds.ed.gov or call the Department of Education’s Federal Student Aid Information Center at 1-800-433-3243 or 1-800-730-8913 (TDD). Borrowers with private student loans can check the contact information on their monthly billing statements.
If a borrower is experiencing trouble with their student loan servicer, they are encouraged to contact the following and file a complaint:
- IDPFR Division of Banking 217-785-2900 for information or to file a complaint with IDFPR
https://www.idfpr.com/admin/banks/DoBcomplaints.asp - Attorney General’s Student Loan Helpline at 1-800-455-2456 or file a complaint with the Office of the Illinois Attorney General
https://illinoisattorneygeneral.gov/consumers/filecomplaint.html - The Consumer Financial Protection Bureau
https://www.consumerfinance.gov/complaint/
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