While the pandemic hasn’t caused private student loan payments to stop, many lenders are providing alternative options, like temporary deferment or altered payment plans.
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Through the CARES Act, the government has temporarily suspended interest and repayments on federal student loans due to the COVID-19 pandemic. However, you might be wondering whether private student loans have also been impacted by the coronavirus.
The good news is that many private lenders are providing assistance to customers who have been affected by the pandemic, despite the fact that each private lender has its own policies.
How has the COVID-19 pandemic affected private student loans?
Private student loan lenders generally continue to operate the same whether you are a student or have graduated. This means that COVID-19 has not had a significant impact on private student loans.
Despite the fact that private student loans are not covered by the CARES Act, many lenders appear to recognize that borrowers may be experiencing hardship in these trying times and are offering various forms of assistance to borrowers.
For instance, some lenders provide forbearance, deferment, or modified payment plans.
Taking out private student loans during the pandemic
Regardless of the pandemic, the application procedure for private student loans should generally be the same if you need to borrow money to pay for school.
Private student loans are still an option for paying for both traditional and non-traditional programs, like trade schools or online colleges.
To find the best loan for you, make sure to look into as many lenders as you can before applying for a loan. Credible makes this simple for you; in the table below, you can compare your prequalified rates from our partner lenders in two minutes.
Learn More: Best Graduate Student Loans
How lenders are handling the pandemic
As the pandemic continues, the following is how each of Credible’s affiliate lenders is managing private student loans:
Call Launch Servicing at 877-354-2629 to talk about your Ascent loans.
Contact information: To discuss options for your Citizens loans, call Firstmark Services at 866-259-3767.
Contact information: Call 844-803-0736 to request assistance from College Ave.
To speak with Custom Choice about your options, call 866-266-3637.
To discuss options for your EDvestinU loans, call Granite State Management and Resources at 800-719-0708.
To discuss options for your INvestEd loans, contact American Education Services (AES) at 800-233-0557.
Learn More: Applying for Student Loan Unemployment Deferment
Call AES at 800-233-0557 to determine which choice is best for your MEFA loan needs.
To speak with Sallie Mae about your options, call 833-558-6577.
Check out: How to Obtain Student Loans for Outstanding School Bills
How to take out a new student loan
If you require a student loan to pay for your education, take the following actions:
However, bear in mind that numerous schools have developed strategies and instructions for dealing with the pandemic. Make sure to check in with your school to learn more about how classes and campus life are going so you can decide what is best for your circumstances.
Consider the cost of the loan in the future if you decide to take out a private student loan. This way, you can prepare for any additional expenses.
Using the student loan calculator below, you can determine how much you will pay over the course of your federal or private student loans.
Enter your loan details to determine your potential payment amount Loan amount
You will pay $ each month in interest on a $ loan for its entire term, totaling $. If you make all of the required payments while you are enrolled in school, you will pay a total of $ over the loan’s term.
Compare rates without affecting your credit score if you need a student loan. 100% free!.
Checking rates won’t affect your credit score.
How to manage existing student loans
You might be struggling to make payments on your existing student loans. In this situation, getting in touch with your lender ought to be your first move.
Your lender may be able to provide you with student loan assistance, such as lowering your payments or temporarily deferring your loans, despite the fact that this may seem intimidating or even frightening.
You might think about refinancing your student loans if your lender offers you no other options. You may be eligible for a lower interest rate, which could enable you to reduce your interest costs.
Alternately, you could choose a longer repayment period to lower your monthly payment, but you would end up paying more in interest over time.
If you have bad or fair credit, refinancing with a cosigner may help you get a lower rate or be approved.
Also keep in mind that refinancing federal student loans will void your eligibility for certain federal benefits and protections, including student loan forgiveness programs and access to income-driven repayment plans.
Use the calculator below to determine how much you might be able to save on your student loans if you decide to refinance them.
Step 1. Enter your loan balance Loan balance
Step 2. Enter current loan information Interest rate
Step 3. Enter the details of your new loan to begin figuring out your savings interest rate.
You can save money by refinancing your student loan at% interest rate. You’ll pay an extra $ per month and have your loan paid off by The total cost of the new loan will be $.
Compare offers from the best lenders to see if refinancing makes sense for you and calculate your actual savings
Checking rates won’t affect your credit score.
Keep Reading: When to Refinance Student Loans About the author
Lindsay VanSomeren specializes in credit and loans. Her work has appeared on numerous websites, including LendingTree, Forbes Advisor, and Credit Karma.
Choosing a Student Loan
Tools and Resources
Are Sallie Mae loans being deferred?
If you’re enrolled full-time or part-time, you can apply for a deferment of up to 48 months for a Smart Option Student Loan® or a Sallie Mae graduate student loan.
Are Sallie Mae loans going to be forgiven?
No, Sallie Mae is not participating in the forgiveness program; it only applies to federal student loans. Sallie Mae loans and other private student loans won’t be forgiven under this program.
Will student loans be deferred again past May 2022?
The student loan payment pause now ends on Dec. 31, 2022. The borrower should get ready to start making payments again in January or look into alternative repayment options.
Are student loans still deferred 2022?
1, 2022. The Biden administration said on Tuesday that it would postpone the federal student loan payment freeze until either the end of June or the time that it can implement its debt forgiveness plan. Bills for federal student loans were supposed to start again in January.