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Private student loans are not covered by the student loan provisions in the CARES Act, which leaves thousands of borrowers who have lost income due to the current crisis unsure of what to do next. If you’re a private student loan borrower who is having trouble making payments during this time, here are a few of your options:
First, contact your lender to see what assistance they can offer you. Many private student loan lenders are offering assistance or relief on a case by case basis. Some (like Navient, Nelnet, CommonBond, and SoFi) have made commitments to offering concrete relief options — you can find a list compiled by the state of Connecticut here.
When you contact your lender, it’s helpful to ask specifically about the terms of any forbearance or assistance offered. For example, ask if there will be any capitalization of interest accrued during a forbearance. Those details will help you make an informed decision about the best next step for your loan situation.
Here’s an example of an email