4 results for "forbearance"
Borrowers experiencing impact to income related to a natural disaster can request forbearance of up to 2 monthly payments that does not count against allowance for economic hardship forbearance under borrower’s loan term agreement.
Yes, borrowers may apply for forbearance if they experience a qualifying hardship. In these instances, borrowers may be eligible for one or more 3-month time periods, however, a minimum of 12 months are required between any two forbearance period(s). Borrowers with a loan term of at least 10 years are eligible for up to 12 months of forbearance over the life of the loan; borrowers with a loan term less than 10 years are eligible for 1 month for every year of the loan term (e.g. if your loan term is 5 years you are eligible for up to 5 months of forbearance over the life of the loan). Borrowers seeking economic hardship forbearance due to unemployment must have made 12 consecutive monthly payments prior to a forbearance request to be eligible. For any other forbearance due to economic hardship, borrowers must have made 9 consecutive monthly payments prior to a forbearance request to be eligible. All requests for forbearance are subject to review, including the review of acceptable documentation of the nature and expected duration of the economic hardship. During any period of forbearance, interest will continue to accrue and, unless otherwise noted, any unpaid accrued interest will be capitalized and added to the remaining principal amount of the loan at the end of the forbearance period.
If you had previously refinanced your federal student loan with Laurel Road, you did not qualify for this federal program under the CARES Act. If you are an existing Laurel Road member and are experiencing an impact to your income as a result of COVID-19, please contact MOHELA at 1-877-292-6845 (TTY: Dial 711) to inquire about forbearance and hardship options available to you. For more information on federal student loan repayment options, visit studentaid.gov.
The AutoPay/EFT Discount is a 0.25% interest rate discount for making recurring monthly payments via electronic fund transfer (EFT) from a bank account. When applied your rate will be decreased by 0.25%. If, however, you stop making automatic payments via EFT, then your rate will increase by 0.25%. The 0.25% AutoPay/EFT Discount will not reduce the monthly payment; instead, the discount is applied to the principal to help pay the loan down faster. Rates advertised on this site typically include the 0.25% AutoPay/EFT Discount. However, if you stop making automatic payments or if Laurel Road cancels your automatic payments due to returned payment, delinquency, or forbearance, or otherwise, then your rates will go back to their regular levels. Discount not available during periods of deferment when no payment is required. In your welcome letter, you will receive instructions on how to set up automatic payments.