WOOD RIVER — In an effort to help people struggling to pay their student loans during the unprecedented economic challenges facing the state and country, State Senator Rachelle Crowe (D-Glen Carbon) is highlighting relief options that could benefit nearly 140,000 Illinois residents.
“During this financially difficult time while millions of people are out of work, they should not be held under the weight of their student debt,” Crowe said. “I urge impacted borrowers to contact their loan providers immediately to discuss options to temporarily wave payments.”
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Under the initiative, organized by the governor and Secretary Deborah Hagan of the Illinois Department of Financial and Professional Regulation, people with commercially-owned Federal Family Education Program Loans or privately held student loans who are having a hard time making their payments due to COVID-19 will be eligible for expanded relief.
Borrowers who need assistance are asked to immediately contact their student loan provider to set up a plan.
Relief options are based on a person’s individual needs and 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, and * Working with borrower to enroll them in other borrower assistance programs, such as income-based repayment.
If a person is having problems contacting their student loan servicer, they can contact the Illinois Department of Financial and Professional Regulation Division of Banking at 217-785-2900 or the attorney general’s student loan helpline at 1-800-455-2456.
