Student Loan Hero Coronavirus Information Center

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The coronavirus outbreak has changed the entire landscape of student loan repayment and refinance. For instance, if you have federally held student loans, you do not currently need to make any repayment on them, as the government is offering automatic interest-free forbearance through Sept. 31, 2021. (See below for more details.)

In order to give you the very latest information on how to deal with your student loans during this crisis, we’ve created this information center with updated guidance and links to our latest reports on new developments.

Note that some of our advice during this pandemic is a little different than what it is in normal times, so be sure to consult this page first when you have questions about your student loans. We’ll be updating this information center regularly to get you all the details on how to keep student debt from wrecking your finances during the outbreak.

Student Loan Hero wishes you and your loved ones safety and well-being during this difficult time.

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How the coronavirus pandemic affects your student loans: FAQs

What is happening with student loan repayment during the coronavirus outbreak?

The U.S. government has suspended all federal student loan payments and halted all interest charges, through the end of September 2021. At the same time, all collections and garnishments on federal student loans in default have stopped as well. Check out more information in our detailed report, as well as how the situation may change in the near future.

That said, there are some cases where it might make sense to keep paying down your federal student loan anyway. Here are some thoughts on whether to take advantage of the coronavirus student loan relief.

As for private student loans, each case may be different. Check out our earlier report on what some of the larger private student loan lenders are doing to help borrowers through this difficult time.

    If you have a refinanced student loan, meanwhile, you can see what assistance is available from some of the top lenders by clicking here.

    Is payment on ALL federal student loans suspended?

    At this point, the interest-free halt to repayment only applies to federal student loans owned by the Department of Education. This covers most government-issued loans, but note that some Federal Family Education Loans (FFELs) are commercially-held, and some Perkins loans are owned by your college.

    Undoubtedly, the differences between a federal loan being “held” or merely “guaranteed” is bound to confuse. If you’re not sure what kind of loans you have, start by logging into the Federal Student Aid (FSA) website with your FSA ID to view all your federal loans.

    A FFEL loan borrowed before 2010 is unlikely to meet criteria for relief. For any Perkins loans, you could clear up the confusion by calling your loan servicer directly or contacting your school’s financial aid office.

    If you have commercial or school-granted loans, you might think you’re out of luck. But there are a variety of ways to still pause or reduce your repayment, receive repayment assistance and generally manage your debt until the economy recovers. Check this report for all the details, but here’s a basic overview of three steps you could take to get relief on loans that don’t qualify for the new federal measures:

    • Check your state’s options: Some state governments are stepping in to provide additional aid for struggling student loan borrowers, especially in terms of any debt held by the state. Contact your state’s education department for more information.
    • Contact your lender or loan servicer: Speak directly with your lender or loan servicer (not a third party, as that could leave you vulnerable to student loan scams) and see if you can pause your monthly payments with a deferment or forbearance unrelated to COVID-19. Alternatively, you could lower the monthly payments on your ineligible FFEL debt by enrolling in the Income-Sensitive Repayment plan to cap your dues at a percentage of your annual income. If you recently suffered a loss of income, you could apply for a recalculated (decreased) payment obligation.
    • Consider a Direct Consolidation loan: Your ineligible FFEL or Perkins loans can also be grouped into a Direct Consolidation loan. Besides getting you covered for a portion of the 0% interest and payment-suspension period, consolidation would also deliver a single monthly payment and make you eligible for income-driven repayment (IDR) plans. Just be mindful that consolidation could erase any progress you’ve made toward a relief program like Public Service Loan Forgiveness.
    • Talk to your employer: If you have federal (or private) loans that don’t qualify for the student loan payment suspension, consider bringing up your concerns with your human resources department. As part of the coronavirus economic rescue package, the government gave employers temporary tax relief for contributing up to $5,250 toward their employees’ student loan payments. This benefit is slated to stay until at least 2025, and it could cover any student debt, whether federal or private.

    What can I do if I’ve run out of money/lost my income?

    If you’re in desperate straits, take a look at these posts for advice on how to put food on the table and cover your housing costs.

    Likewise, here are some ideas for earning money during the coronavirus pandemic — not all of these work-from-home opportunities will still be available, but some will.

    As for that student debt, at least your federal student loans won’t be a problem now that the government has suspended all repayment. For your private loans, however, you should definitely contact your lender to see about pausing your payments via forbearance, although this might not be interest-free.

    dropping out of college

    Should I refinance my student loans during the crisis?

    How good an idea refinancing is right now will depend on your personal situation, and especially whether you’re talking about federal or private loans. If you’re concerned about your finances or losing a job, you’ll likely want to hold tight on your federal loans, as all payments are suspended.

    On the other hand, interest rates have plunged in reaction to the coronavirus pandemic, so it’s a great time for deals if you’re considering refinancing — particularly with private student loans, since those payments haven’t been suspended, and you won’t be giving up any federal protections.

    As for refinancing federal student loans, first make sure that your finances are solid and you’ll be able to afford the payments before you trade the government protections on your federal loans for a potentially lower interest rate.

    For more information…

    How are parent student loans impacted?

    The relief programs for federal student loans mentioned above also extend to any parent loans you might have taken out for a child, grandchild or other student — so long as they’re held by the government.

    This includes the suspension of payments, the halt to collections for delinquent loans, and even the awarding of credit toward student loan forgiveness, regardless of whether you pause repayment (see next question).

    For a parent-focused rundown of the benefits currently on offer as part of the coronavirus relief efforts, as well as what you might be able get from private lenders, check out our report on parent loans during the pandemic.

    How does suspending payments affect student loan forgiveness, such as PSLF?

    You will still be able to make progress toward Public Service Loan Forgiveness or other federal forgiveness programs — even as you take advantage of the six-month suspension of payments, the programs will still consider it as if you had kept up your repayment, the Consumer Financial Protection Bureau said.

    college admissions

    How will the pandemic affect college admissions?

    Standardized tests for college, such as the SAT and ACT, may be available but there is limited testing capacity to follow local health guidelines. Make sure to check with your local testing centers for any guidelines or news about closures.

    Many colleges have announced they will be “test optional” for the foreseeable future, meaning applicants won’t be required to take one of these tests. Since policies will differ from school to school, check out the admissions pages from the websites of your preferred colleges and universities.

    Are student loan scams still a danger during the pandemic?

    If you get a phone call or see an ad promising student loan relief in exchange for a fee, you could be dealing with a student loan scam.

    Know that you should never have to pay anything to put your loans into forbearance. Similarly, your lender is unlikely to contact you to offer forbearance or deferment options — it’s up to you to reach out to your lender.

    During these tough times, beware any predatory loan companies that want to charge you money or are making promises that seem too good to be true. You can find out more by clicking here.

    Check out more of the latest coronavirus student loan developments

    Interested in refinancing student loans?

    Here are the top 6 lenders of 2021!
    LenderVariable APREligible Degrees 
    1.89% – 5.99%1Undergrad
    & Graduate

    Visit Splash

    1.99% – 5.64%2Undergrad
    & Graduate

    Visit Earnest

    1.99% – 6.84%3Undergrad
    & Graduate

    Visit CommonBond

    1.91% – 5.25%4Undergrad
    & Graduate

    Visit Lendkey

    2.25% – 6.53%5Undergrad
    & Graduate

    Visit SoFi

    2.17% – 4.47%6Undergrad
    & Graduate

    Visit PenFed

    Check out the testimonials and our in-depth reviews!
    1 Important Disclosures for Splash Financial.

    Splash Financial Disclosures

    Terms and Conditions apply. Splash reserves the right to modify or discontinue products and benefits at any time without notice. Rates and terms are also subject to change at any time without notice. Offers are subject to credit approval. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet applicable underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates are reserved for the highest qualified borrowers. If approved, your actual rate will be within a range of rates and will depend on a variety of factors, including term of loan, a responsible financial history, income and other factors. Refinancing or consolidating private and federal student loans may not be the right decision for everyone. Federal loans carry special benefits not available for loans made through Splash Financial, for example, public service loan forgiveness and economic hardship programs, fee waivers and rebates on the principal, which may not be accessible to you after you refinance. The rates displayed may include a 0.25% autopay discount.

    The information you provide to us is an inquiry to determine whether we or our lenders can make a loan offer that meets your needs. If we or any of our lending partners has an available loan offer for you, you will be invited to submit a loan application to the lender for its review. We do not guarantee that you will receive any loan offers or that your loan application will be approved. Offers are subject to credit approval and are available only to U.S. citizens or permanent residents who meet applicable underwriting requirements. Not all borrowers will receive the lowest rates, which are available to the most qualified borrowers. Participating lenders, rates and terms are subject to change at any time without notice.

    To check the rates and terms you qualify for, Splash Financial conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, the lender will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

    Splash Financial and our lending partners reserve the right to modify or discontinue products and benefits at any time without notice. To qualify, a borrower must be a U.S. citizen and meet our lending partner’s underwriting requirements. Lowest rates are reserved for the highest qualified borrowers. This information is current as of Feburary 1, 2021.


    2 Important Disclosures for Earnest.

    Earnest Disclosures

    To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.

    Earnest fixed rate loan rates range from 2.98% APR (with Auto Pay) to 5.49% APR (with Auto Pay). Variable rate loan rates range from 1.99% APR (with Auto Pay) to 5.34% APR (with Auto Pay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms 10 years or less. For loan terms of 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.82% and 5.50% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of October 26, 2020, and are subject to change based on market conditions and borrower eligibility.

    Auto Pay discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.

    The information provided on this page is updated as of 10/26/2020. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, email us at [email protected], or call 888-601-2801 for more information on our student loan refinance product.

    © 2020 Earnest LLC. All rights reserved. Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America.


    3 Important Disclosures for CommonBond.

    CommonBond Disclosures

    Offered terms are subject to change and state law restriction. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900), NMLS Consumer Access. If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown. ‍All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 0.15% effective Jan 1, 2021 and may increase after consummation.


    4 Important Disclosures for LendKey.

    LendKey Disclosures

    Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it  endorse,  any educational institution.

    Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments. The lowest advertised variable APR is only available for loan terms of  5 years and is reserved for applicants with FICO scores of at least 810.

    As of 02/17/2021 student loan refinancing rates range from 1.91% APR – 5.25% Variable APR with AutoPay and 2.95% APR – 7.63% Fixed APR with AutoPay.


    5 Important Disclosures for SoFi.

    SoFi Disclosures

    1. Student loan Refinance: 1. Fixed rates from 2.99% APR to 6.99% APR (with AutoPay). Variable rates from 2.25% APR to 6.53% APR (with AutoPay). Interest rates on variable rate loans are capped at either 8.95% or 9.95% depending on term of loan. See APR examples and terms. Lowest variable rate of 2.25% APR assumes current 1 month LIBOR rate of 0.12% plus 2.38% margin minus 0.25% ACH discount. Not all borrowers receive the lowest rate. If approved for a loan, the fixed or variable interest rate offered will depend on your creditworthiness, and the term of the loan and other factors, and will be within the ranges of rates listed above. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. See eligibility details. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. The discount will not reduce the monthly payment; instead, the interest savings are applied to the principal loan balance, which may help pay the loan down faster. Enrolling in autopay is not required to receive a loan from SoFi. *To check the rates and terms you qualify for, SoFi conducts a soft credit inquiry. Unlike hard credit inquiries, soft credit inquiries (or soft credit pulls) do not impact your credit score.Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE.

    6 Important Disclosures for PenFed.

    PenFed Disclosures

    Annual Percentage Rate (APR) is the cost of credit calculating the interest rate, loan amount, repayment term and the timing of payments. Fixed Rates range from 2.99%-5.15% APR and Variable Rates range from 2.17%-4.47% APR. Both Fixed and Variable Rates will vary based on application terms, level of degree and presence of a co-signer. These rates are subject to additional terms and conditions and rates are subject to change at any time without notice. For Variable Rate student loans, the rate will never exceed 9.00% for 5 year and 8 year loans and 10.00% for 12 and 15 years loans (the maximum allowable for this loan). Minimum variable rate will be 2.00%. These rates are subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change.

     

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