“Many families in our community are struggling with financial hardship as a result of this pandemic, and the reality is that student loans comprise a significant amount of the monthly budget. While previous federal action will help those individuals with government-owned loans, the relief announced by the state last week will give protections to those with private loans or loans not owned by the federal government,” said Edly-Allen. “The added protections can benefit over 138,000 Illinoisans with private student loans and give them some much-needed relief during these uncertain times.”
The federal CARES Act suspended monthly payments, interest and involuntary collection activity for loans owned by the federal government until September 30. The Illinois Department of Financial and Professional Regulation announced expanded protections in partnership with 20 private student loan services. These relief measures may include a minimum of 90 days of forbearance, waiving late payment fees, ensuring that borrowers are not subject to negative credit reporting, ceasing debt collection lawsuits for 90 days, and working with borrowers to ensure enrollment in existing programs such as income based repayment plans.
Borrowers with private student loans are urged to contact their servicers using the contact information on their billing statements. Consumers experiencing trouble with their servicer are encouraged to contact and file a complaint with the Illinois Department of Financial and Professional Regulation at IDFPR.com/admin/banks/DoBcomplaints.asp, the Illinois Attorney General at IllinoisAttorneyGeneral.gov/consumers/filecomplaint.html or the Consumer Financial Protection Bureau at ConsumerFinance.gov/complaint.
“The collective efforts of all Illinoisans are working to curb the spread of the virus and flatten the curve, but we also know that this comes with sacrifice. This virus will have far-reaching long-term impacts of the financial security of every family in our community,” Edly-Allen added. “This expansion of student loan relief is one meaningful way in which we can give individuals and families in our community vital relief as we work to rebuild our communities. Anyone in need of assistance should reach out right away directly to their loan servicers to find out what options are available to them.”
Visit Rep. Mary Edly-Allen’s website
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Springfield, IL 62706
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