Cuomo: Student loan industry to suspend collections and late fees

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ALBANY, NY. (NEWS10) — Gov. Andrew M. Cuomo announced relief for about 300,000 New Yorkers with student loan debt on Tuesday. Cuomo says he reached an agreement with major student loan servicers including Navient, Nelnet, PHEAA, MOHELA, to defer collections and waive late fees.

The governor’s office made clear, however, that the agreement would apply to borrowers who contact their private student loan servicer about their financial hardship due to COVID-19.

Besides 90 days of deferred monthly payments and waived late fees, the largest loan servicers also agreed not to reporting negative numbers to credit agencies, and to enroll eligible borrowers in long-term assistance programs, where available.

This is good news for student loan borrowers not covered by the federal Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, which only applies to those with federally owned loans.

The State Department of Financial Services will release guidelines on the state’s agreement with the private loan industry. Visit their website to learn more about available student loan relief.

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