Financial relief available to New Jersey residents struggling to repay private student loans

New Jersey residents having difficulty repaying their private student loans – and who did not qualify for aid under the $2 trillion coronavirus stimulus package – will now be eligible for financial assistance from the state.

About 200,000 New Jersey residents with private student loans are expected to benefit from this initiative, Gov. Phil Murphy said Tuesday. The CARES Act only provided financial relief options for those who hold student loans owned by the federal government.

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Some of the measures being offered to help private student loan holders during the COVID-19 pandemic include a 90-day minimum of forbearance relief, late payment fees waived, the assurance of no negative credit reporting of any borrower, the stoppage of debt collection lawsuits for 90 days, and providing eligible borrowers with other applicable programs in which they can enroll.

Borrowers must contact their student loan providers to identify which options are most appropriate for their circumstances, Murphy said.

“Far too many New Jerseyans struggle with crushing student loan debt in good times, and our current crisis has only exacerbated the problem,” Murphy said. “This initiative will provide much needed relief to New Jerseyans who are struggling with student loans and other financial obligations during this crisis. I commend the private sector servicers that joined this initiative for easing some of the affordability concerns of our student loan borrowers who have been impacted by COVID-19.”

The FAFSA deadline for New Jersey college students to apply for a renewal of state tuition aid ahead of the 2020-21 school year was moved from April 15 to June 1.