Expansion of upcoming payment relief for student loan borrowers, according to Pritzker
Governor Pritzker and Secretary Hagan of the Illinois Department of Financial and Professional Regulation (IDFPR) announced that Illinois had obtained relief options from twenty private student loan services to extend protections afforded by the federal government to federal student loan borrowers. These new options are expected to benefit more than 138,000 Illinois residents with private student loans.
“I am pleased to report that starting today, more student loan borrowers in Illinois will now receive relief,” Governor JB Pritzker said. “The IDFPR has worked tirelessly to secure loan relief options with twenty student loan officers. Affected borrowers can immediately contact their loan provider for relief with these new options. “
“In this unprecedented time of financial hardship, it was essential to find a way to provide relief to all student loan borrowers who are experiencing financial hardship due to the COVID-19 pandemic. I’m delighted that we’ve been able to work with multiple states and departments to make this happen for our Illinois students, ”said Secretary Deborah Hagan, secretary of the Illinois Department of Financial and Professional Regulation.
The federal CARES law has provided much needed relief to students receiving federal loans, including the suspension of monthly payments, interest, and involuntary collection activities until September 30, 2020. However, the CARES law has left millions behind. student loan borrowers with federal loans that are not owned by the US government as well as loans from private lenders.
As part of this new initiative, Illinoisans with federal business-owned family education program loans or private student loans who are struggling to make payments due to the COVID-19 pandemic will be eligible for a expanded relief.
Borrowers who require assistance should immediately contact their student loan officer to identify options appropriate to their situation. Backup options include:
– Provide a minimum of 90 days of abstention
– Waiver of late payment fees
– Ensure that no borrower has a negative credit report
– Cessation of debt collection proceedings for 90 days
– Work with the borrower to enroll in other borrower assistance programs, such as income-based repayment.
Additionally, while regulated student loan managers are limited in their ability to take these actions due to investor restrictions or contractual obligations, managers should instead work proactively with loan holders where possible to ease these restrictions or obligations. The prudent and reasonable steps taken to support borrowers during the pandemic will not be subject to criticism from IDFPR reviewers.
To determine what types of federal loans they have and who their agents are, borrowers can consult the Department of Education’s National Student Loans Data System (NSLDS) at
or call the Department of Education’s Federal Student Aid Information Center at 1-800-433-3243 or 1-800-730-8913 (TTY). Borrowers with private student loans can verify contact information on their monthly billing statements.
If a borrower is having issues with their student loan officer, they are encouraged to contact the following people and file a complaint:
– IDPFR Division of Banking 217-785-2900 for information or to file a complaint with the IDFPR
– The Attorney General’s Student Loan Hotline at 1-800-455-2456 or file a complaint with the Illinois Attorney General’s Office
– The Consumer Financial Protection Bureau
The actions of Governor Pritzker and Secretary Hagan to work in cooperation with other states to secure these homes with twenty private student loan officers will bring relief to thousands of Illinois students. States joining the initiative include California, Colorado, Connecticut, Massachusetts, New Jersey, Vermont, Virginia and Washington.