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The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you. SHARE: Dejan Dundjerski/Shutterstock September 15, 2021 Jennifer Calonia is an L.A.-based writer and editor. She's covered topics like debt, saving money and credit cards. You can find her work on Business Insider, Forbes and more. Aylea Wilkins is an editor specializing in personal and home equity loans. She has previously worked for Bankrate editing content about auto, home and life insurance. She has been editing professionally for nearly a decade in a variety of fields with a primary focus on helping people make financial and purchasing decisions with confidence by providing clear and unbiased information. Bankrate logo The Bankrate promise
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Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Our loans reporters and editors focus on the points consumers care about most — the different types of lending options, the best rates, the best lenders, how to pay off debt and more — so you can feel confident when investing your money. Bankrate logo Editorial integrity
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You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. With the delta variant triggering a renewed surge in COVID-19 cases, the pandemic continues to play a role in the country’s economy, causing the recovery to be more sluggish than anticipated. Just 235,000 jobs were added to the economy in August, which is a significant slowdown compared to what experts had been projecting. For some U.S. workers the pandemic dragging on means continued financial uncertainty. For those struggling to keep up with their debt, there are relief options available from banks, lenders and the federal government. If you can’t pay your loans or soon won’t be able to, one of these programs may be able to help. Federal student loans
In August, the U.S. Department of Education through Jan. 31, 2022. The pause was set to expire Sept. 30, 2021, and the administration has made it clear that this is the last extension. For an extra four months, federal student loan borrowers and borrowers with defaulted loans can take advantage of several relief measures Interest waiver
Federal student loan interest rates will remain at 0 percent through the end of January 2022. Borrowers don’t need to take any action to put this into place. However, check your student loan statements each month to ensure that interest isn’t charged on your federal loans through January. Payment suspension
Federal student loan borrowers also have extended relief when it comes to monthly student loan payments. Payments on Direct Loans owned by the Department of Education are paused until January 31, 2022. This payment suspension is also automatic. This suspension does not make your student loan debt disappear, but it does allow you to save on monthly payments through January. If you’re working toward, you will continue to receive credit during the suspension period if you work full time for a qualifying employer. Borrowers can also choose to continue making payments during this temporary deferment. If you want to continue your regularly scheduled student loan payments, your entire payment will be applied to your principal balance, which helps you pay down your debt faster. If you use automatic payments, these may have been automatically suspended at the start of the deferment period. Contact your servicer if you’d like to start automatic payments again. Suspended collections activities
Collections activities for federal student loans have been paused since March 2020, and defaulted loans from the Federal Family Education Loan (FFEL) Program were added to the list of eligible loans in March 2021. Borrowers who have defaulted on FFEL loans since March 13, 2020, will have their seized wages and tax returns automatically restored, have their defaulted accounts set to good standing and have refunds offered on voluntary payments made since that date until Jan. 31, 2022. Private student loans
Private student loan debt isn’t covered under the presidential action — there are no government protections that require private lenders to waive interest or defer payments for borrowers. However, your private lender might offer a hardship relief program or temporary student loan forbearance. For example, Earnest offers a short-term student loan forbearance for eligible borrowers upon request. If you can’t pay your private student loans because the pandemic has affected your income, reach out to your lender immediately. Keep in mind that eligibility for hardship relief programs varies among lenders. Personal loans
Many banks are stepping up to waive fees and help consumers stay on track with their loans despite losses in income. For example, Marcus by Goldman Sachs is letting customers defer payments on their personal loans for one month without accruing interest. If you’re unsure if your lender is offering assistance on , contact it directly to ask. New programs may be announced on a rolling basis, so regularly check to see if help is available. Home equity loans
Homeowners with home equity loans should reach out to their lenders if payments can’t be made on time. Some financial institutions are offering temporary deferment on home equity loans for those who are eligible. For example, Bank of America is offering a three-month or longer payment deferment if your income has been affected by the coronavirus pandemic. If you’re struggling to stay on top of your home equity loan, call your lender to learn more about your options. List of lenders providing loan relief
Many lenders continue to provide relief as the pandemic drags on. The list below is not exhaustive. Contact your lender for details about hardship assistance programs it offers. Bank of America: Payment deferral on home loans is available upon request. Fifth Third Bank: Mortgage customers can request up to 180 days of payment forbearance with no late fees, and up to an additional 180 days by using an online portal or calling a representative at 877-366-5520. Marcus by Goldman Sachs: Marcus’ customer assistance program allows borrowers to use an online form to postpone loan payments for one month with no interest. PNC: The bank is offering temporary hardship relief for qualified customers with auto loans, personal loans, mortgages, home equity loans or lines of credit and student loans. Customers can use an online portal or call a representative. TD Bank: The TD Cares program offers forbearance for eligible customers with mortgages or home equity loans or lines of credit. Borrowers who take part in the program will not be required to make any payments for the duration of the forbearance plan. Customers can learn more by calling a representative at 800-742-2651. S. Bank: Individuals with mortgages may qualify for payment suspension for up to 180 days with no late fees and an additional 180-day extension if they request it through their online accounts. Other steps you could take now if you can t pay your loans
Talking with your lender as soon as possible is one of the most effective ways to get immediate payment relief during financial hardship. In addition to setting up payment deferment or forbearance, there are a few other steps you can take if you can’t pay your loans: Apply for unemployment benefits: The March 2021 American Rescue Plan Act increases the total number of weeks that individuals can collect Pandemic Unemployment Assistance to 73 It also provides an additional $300 weekly benefit for those who are unemployed through Sept. 6. Cut discretionary spending: Review all of your nonessential spending, like dining out, shopping and streaming subscriptions. Find areas that you can cut from your to free up money for loan payments. Refinance your loans: If you have strong credit, you might be eligible for current low-interest rates. Refinancing can help reduce your interest rate and lower your monthly payment. Consider a Available from some banks and credit unions, coronavirus hardship loans are short-term loans that typically have low or no interest. While the loan amounts aren’t very large, these loans do come with favorable terms for borrowers. Regardless of what type of loan you’re struggling with, there’s a good chance that your lender has options that can relieve some of the financial pressure. The best move is to contact your lender if you already know you won’t make your next loan payment. Learn more
SHARE: Jennifer Calonia is an L.A.-based writer and editor. She's covered topics like debt, saving money and credit cards. You can find her work on Business Insider, Forbes and more. Aylea Wilkins is an editor specializing in personal and home equity loans. She has previously worked for Bankrate editing content about auto, home and life insurance. She has been editing professionally for nearly a decade in a variety of fields with a primary focus on helping people make financial and purchasing decisions with confidence by providing clear and unbiased information. Related Articles