Coronavirus (COVID-19)

• 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- 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-day 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 need to extend my COVID-19 hardship forbearance, as my current situation has not improved, and I am not able to make payments at this time. What are my options?
  If you 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 asked for an extension and you were current on your account prior to your forbearance). If your loan was delinquent prior to forbearance, please contact us for other options. 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). To inquire about extending your forbearance 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 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).
• My three month 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. A copy of this letter can 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. Note due to the 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 continuing to experience economic hardship related to the COVID-19 pandemic and require additional relief/ assistance, you may request an additional three month forbearance period if you were current on your account prior to forbearance. If your loan was delinquent, please contact us for other options. Please refer to “I need to extend my COVID-19 hardship forbearance…What are my Options?” 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.
• Will Laurel Road lower rates with the recent federal rate cut?
  Our customers want the best rates and Laurel Road is committed to providing the most competitive rates we can offer. The Fed’s interest rate is just one of several factors used to determine interest rates. Other factors can also include credit quality of applicants and the projected probability of paying off their loans. This is a time of some uncertainty and we appreciate your understanding during this time. We can assure you that we are closely monitoring market conditions to ensure that we are offering the most competitive rates possible.
• My state temporarily suspended debt collections in response to COVID-19. Does this apply to my student loans?
  Some states have been issuing regulations that halt 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, please contact MOHELA at 1-877-292-6845 (TYY: Dial 711) to inquire about forbearance and hardship relief.
• Will Laurel Road be offering forbearance for those impacted by COVID-19?
  If you are experiencing an impact to your income as a result of COVID-19, you can request a forbearance of 3 monthly payments. With this COVID-19 forbearance option: Your loan’s maturity date will be extended by roughly the number of months of the forbearance period. Interest will still accrue but it will not be added to the principal balance of your loan. 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. (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 will not count against your 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). To inquire about this forbearance please contact MOHELA at 1-877-292-6845 (TTY: Dial 711).
• The federal government passed the CARES Act on Friday, March 27th including provisions to delay student loan payments for 6 months. How does that impact my student loan?
  The federal COVID-19 response stimulus bill passed on March 27th, known as the CARES Act, delayed student loan payments and waived interest for six months until September 30, 2020. On August 8th, an Executive Order was issued continuing the pause on monthly payments and interest on federal student loans until Dec. 31, 2020. As of December 4th, the Department of Education has issued a new extension through January 31st, 2021. 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 customer and are experiencing an impact to your income as a result of COVID-19, you may be eligible for a forbearance or an extension of your existing one. To inquire about forbearance and hardship due to COVID-19, please contact MOHELA at 1-877-292-6845 (TYY: Dial 711).