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13 results for "forbearance"

  • How is my repayment schedule impacted after my COVID-19 forbearance?
    While in COVID-19 forbearance, your previous payment schedule is inactivated. Interest continues to accrue but is not added to the principal balance of your loan. A new payment schedule is recalculated after forbearance to pay the remaining term (including any term extensions as a result of forbearance(s) of your loan with the outstanding interest that accrued. As a result, your monthly payment will likely increase and your first payments following forbearance will be applied first to the unpaid interest. Please note, if the accrued interest is not paid and you use a different type of forbearance or deferment in the future (one other than the COVID-19 hardship forbearance), the interest could be capitalized at that future time. The below scenarios can provide you a general idea of how much interest may accrue on your loan over a 90-day vs. 180-day forbearance and how the repayment schedule is impacted thereafter.  These scenarios are examples only—they do not reflect your repayment terms, rate, recalculated payment amount, or amount of accrued interest.
    • You have a $180,000 loan with a 15-year fixed rate of 5.25%
    • Your original monthly payment prior to forbearance is $1,446.98
    • You enter forbearance after 12 months into repayment on your loan with an outstanding balance of $171,893
    After 90 days of COVID-19 forbearance:
    • You exit forbearance with $2,256 in accrued interest
    • Your new monthly payment is $1,465.88
    To account for the interest that accrued in forbearance, in this example your monthly payment would increase by approximately $19 per month for the remainder of your loan term. After 180 days of COVID-19 forbearance:
    • You exit forbearance with $4,512 in accrued interest – approximately twice as much more interest than with 90-day of forbearance
    • Your new monthly payment is $1,484.78
    To account for the interest that accrued in forbearance, in this example your monthly payment would increase by approximately $38 per month for the remainder of your loan term.
  • I’m currently in COVID-19 forbearance, my current situation has not improved and I am not able to make payments at this time. What are my options?
    If you entered COVID-19 forbearance prior to the ending of this program on June 30th, 2021 and are continuing to experience economic hardship related to the COVID-19 pandemic and require additional relief/assistance, you have the option to request an additional three months of COVID-19 hardship forbearance, if you have not previously used in total 9 months of COVID-19 forbearance. To inquire about extending your forbearance, or other hardship options if needed, please contact MOHELA at 1-877-292-6845 (TTY: Dial 711). Please be aware that your loan’s maturity date will be extended by the number of months that you are in COVID-19 forbearance. Interest still accrues but it will not be added to the principal balance of your loan (commonly referred to as capitalizing interest). Rather, the repayment of the interest that accrues during your forbearance period and your outstanding principal balance will be re-calculated over the remaining term of your loan to determine your new monthly payment. Your new monthly payment will likely be higher than your original monthly payment because of the interest that accrued during the forbearance period. Please see your Promissory Note for more information regarding the application of your payments. As a result of the interest that accrues during the forbearance period, you may pay more interest over the life of your loan than what was originally disclosed to you, even if you make timely payments. (Note: If the interest accrued during your COVID-19 hardship forbearance is not paid and you use a different type of forbearance or deferment in the future, the interest could be capitalized at that future time). The COVID-19 forbearance does not count against your total allowance for economic hardship forbearance under the terms of your loan agreement. Additionally, the COVID-19 forbearance will have no effect on meeting the requirements for cosigner release if available under terms of your loan (e.g., if you had made 30 out of the 36 required consecutive payments immediately prior to entering the COVID-19 forbearance, your 31st payment towards meeting the requirement would be due approximately 1-month after exiting the forbearance).
  • My three-month COVID-19 forbearance period is coming to an end soon. What happens next?
    Your account will automatically go back to repayment status and you do not need to take any action to end your forbearance period. Please refer to the new repayment schedule letter sent from MOHELA, which can also be found within the dashboard of your web account at laurelroad.mohela.com. If you were previously enrolled in monthly Auto Payment, that service will automatically resume, and a payment will be deducted from your Bank Account on file with MOHELA on your next scheduled due date. For more details, please refer to your Auto Payment Authorization Agreement. If you are not enrolled in Auto Payment, you will need to make a payment on your next scheduled due date. Please note: due to the COVID-19 forbearance, your loan’s maturity date will be extended by roughly the number of months that you were in forbearance. Interest that accrued during the forbearance period will not be added to the principal balance of your loan (commonly referred to as capitalizing interest). Rather, the repayment of the interest that accrued during the forbearance period and your outstanding principal balance will be re-calculated over the remaining term of your loan to determine your new monthly payment. Your new monthly payment will likely be higher than your original monthly payment because of the interest that accrued during the forbearance period and you may pay more interest over the life of your loan than what was originally disclosed to you, even if you make timely payments. Please see your Promissory Note for more information regarding the application of your payments. (Note: If the interest accrued during your COVID-19 hardship forbearance is not paid and you use a different type of forbearance or deferment in the future, the interest could be capitalized at that future time). If you are a member continuing to experience economic hardship and entered the COVID-19 forbearance program prior to July 1st, 2021 you may request 9 months in total of this forbearance, provided your account was current prior to entering forbearance.  Please refer to this COVID-19 FAQ for more details.
  • I had previously put my loan into forbearance due to COVID-19 hardship, but I am now back to work or no longer need temporary relief, and I would like to begin making payments again.
    If your personal financial situation has improved since the time you initially put your Laurel Road loan into forbearance you can cancel your forbearance by contacting MOHELA at 1-877-292-6845 (TTY: Dial 711). You can continue to make payments at any time during the forbearance period by logging into your web account at laurelroad.mohela.com. Payments received during the forbearance period will apply first to any fees incurred prior to entering the forbearance, then to outstanding accrued interest, and finally to the principal balance.
  • My Laurel Road student loan is currently in COVID-19 forbearance, but I am now back to work or no longer need temporary relief, and I would like to begin making payments again.
    If your personal financial situation has improved since the time you initially put your Laurel Road loan into COVID-19 or economic hardship forbearance you can cancel your forbearance by contacting MOHELA at 1-877-292-6845 (TTY: Dial 711). You can continue to make payments at any time during the forbearance period by logging into your web account at laurelroad.mohela.com. Payments received during the forbearance period will apply first to any fees incurred prior to entering the forbearance, then to outstanding accrued interest, and finally to the principal balance.
  • Does Laurel Road offer forbearance for those impacted by a natural disaster?
    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.
  • Does Laurel Road offer forbearance in the event that I lose my job and become unemployed?
    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.
  • My state temporarily suspended debt collections in response to COVID-19. Does this apply to my student loans?
    Some states have issued regulations that halted the collection of debts, including student debts. In many cases these regulations impact past due loans or loans owed directly to the state. However, requirements vary across each state and you should check with your state for specifics. If you have a loan with Laurel Road these regulations do not eliminate the debt. If you are having difficulty repaying your loan due to COVID-19 or other economic hardship, please contact MOHELA at 1-877-292-6845 (TYY: Dial 711) to inquire about individual forbearance and hardship relief options.
  • How is Laurel Road helping members who are experiencing continued financial impact from the COVID-19 pandemic?
    The health and financial well-being of our members and community have remained a top concern amidst the COVID-19 pandemic. After June 30th, 2021 the Laurel Road COVID-19 Forbearance program will no longer be offered as a hardship option. If you are a member who requires financial assistance please contact our student loan servicing partner MOHELA at 1-877-292-6845 (TTY: Dial 711) to discuss other Laurel Road economic hardship forbearance options that may be available to you, as you may be eligible for full or partial forbearance for a 3-month period. All requests for forbearance are subject to review, including acceptable documentation of the nature and expected duration of the economic hardship. Please contact us directly to discuss your individual options. Please note: interest will continue to accrue in forbearance and any unpaid accrued interest will be capitalized and added to the remaining principal of the loan at the end of the forbearance period.
  • In response to the COVID-19 pandemic, the federal government has paused all federal student loan payments and waived interest charges on federally held loans until 1/31/22. How does that impact my student loan?
    If you have previously refinanced your federal student loan with Laurel Road, you do 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.
  • What is the AutoPay/EFT Discount? How can I get it?
    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.