New York Gov. Andrew Cuomo on Tuesday announced relief for as many as 300,000 borrowers of private student loans who are left out of the ambit of the federal Coronavirus Aid, Relief, and Economic Security Act, or CARES Act.
These 300,000 borrowers can now contact their student loan servicer to defer student loan payments for 90 days and obtain other relief, including no late payment fees and no negative data reported to credit bureau agencies, the New York State Department of Financial Services said on Wednesday. These measures were made possible after the department reached an agreement with several lenders, including Navient, Nelnet, PHEAA and MOHELA, which represent approximately 90% of the privately-held student loans in New York.
The CARES Act offers similar relief measures but only for federal student loan borrowers.
“At a time where many are suffering financial hardship due to COVID-19 it is imperative that all regulated industries work with consumers to provide relief,” said Linda A. Lacewell, superintendent of New York’s Department of Financial Services. “We appreciate the largest student loan servicers and lenders in New York and the nation stepping forward with a thoughtful plan to help New York student loan borrowers.”