MONTPELIER, Vt. (NEWS10) – Gov. Phil Scott and the Department of Financial Regulation announced a multi-state effort to secure student loan relief for Vermonters with private loans. Relief options from national loan servicers will increase protections for borrowers not covered by the CARES Act.
The CARES Act includes federal loan relief, but it leaves out loans from private lenders, as well as federal loans not owned by the federal government. Vermonters with private- or commercially-owned student loans will be able to take advantage of several relief options:
- Forbearance for 90+ days
- Waiving late payment fees
- Protections from bad credit reports
- Halting debt-collection lawsuits for 90 days
- Helping borrowers enroll in assistance programs like income-based repayment
Loan servicers will also work with borrowers to relax investor restrictions and contractual obligations. Borrowers who need assistance must immediately contact their student loan servicer or lender to benefit from the relief initiative.
To find out what type of loan you have and who your loan servicer is, visit the Department of Education’s National Student Loan Data System or call the Federal Student Aid Information Center at (800) 433-3243 or (800) 730-8913 for those with hearing loss. Private loan borrowers should check the contact information on monthly bills.
If you are having trouble with your student loan servicer, file a complaint by contacting:
Other states joining this initiative include California, Colorado, Connecticut, Illinois, Massachusetts, New Jersey, Virginia, and Washington.
The Vermont Student Assistance Corporation, or VSAC, is a nonprofit that provides many of these relief options. Loan administrators involved in the program include:
- Aspire Resources
- College Ave Student Loan Servicing
- Earnest Operations
- Kentucky Higher Education Student Loan Corporation
- Lendkey Technologies
- SoFi Lending Corp.
- Tuition Options United Guaranty Services
- Upstart Network
- Utah Higher Education Assistance Authority