On March 27, 2020, the president signed the CARES Act, which, among other things, provides broad relief in
response to the coronavirus disease 2019 (COVID-19) for federal student loan borrowers whose loans are owned by
the U.S. Department of Education (ED). As your federal loan servicer, we have created this webpage and will
contact you in writing to explain how this law affects your federally owned loans that we service for ED.
WHAT YOU NEED TO KNOW
First, it’s important to understand that the provisions of the CARES Act that affect federal student loans
are temporary. The changes to your federal student loans that we explain on this webpage have been extended
until at least September 30, 2021.
In addition, the interest rate and status changes apply only to your federally owned William D. Ford
Federal Direct Loan (Direct Loan) Program, Federal Family Education Loan (FFEL) Program, and Federal Perkins
Loan (Perkins Loan) Program loans. If you have other federal student loans that are not owned by ED and/or
have private loans, you’ll need to contact the servicers of those loans to discuss potential relief options.
We’ve taken the following actions on the federally owned loans we service for you:
•
0% Interest Rate – We changed the interest rate on the loans to 0% for the period March 13,
2020, through at least September 30, 2021. During this period, you will not be charged interest on your loans.
•
Administrative Forbearance – We placed the loans in an administrative forbearance for the
period March 13, 2020, through September 30, 2021. During this period, you will not be required to make monthly
payments on your loans. If your payments are made through auto debit, those debits will not occur while the
forbearance is in place. We will report you as current to credit reporting agencies.
Although you will not be required to make monthly payments during this specific administrative forbearance period,
payments you would have been required to make between March 13, 2020, and September 30, 2021, will count toward loan
forgiveness provided all other qualifying factors are met.
Note: If you choose to make payments during the administrative forbearance period, you may do so;
however, you’ll need to make those payments manually (not through auto debit). Given the 0% interest rate explained
above, any payments you make during the March 13, 2020, through September 30, 2021, period will be applied to paying
down the principal amount of your loans after accrued interest from other periods has been resolved.
WHAT YOU NEED TO DO
Review the notification we sent you in April 2020, and keep it, and any future notifications, for your records. We’ll also communicate with you soon to help prepare you
for September 30, 2021, when the 0% interest rate and administrative forbearance period is currently scheduled to end.
There’s no other action you need to take, unless you want to opt out of the administrative forbearance we’ve
placed on your account. If you opt out, we’ll remove the administrative forbearance and you’ll be required to
make monthly payments. Unless you want to continue making payments through auto debit, there is no advantage to you by
opting out of the administrative forbearance. The 0% interest rate will remain in effect, and you will not be charged
interest through September 30, 2021, whether the forbearance remains in effect or not.
To opt out, let us know through one of the options described below in the section, “HOW TO CONTACT US.”
• If you change your mind after
opting out, you can simply request that your loans be placed in the administrative forbearance again. Contact us through
one of the options described below in the section, “HOW TO CONTACT US.”
• If you opt out and become more than 30 days late in
making a required monthly payment, we’ll place your loans in the administrative forbearance again.
HOW TO CONTACT US
We’re available to help you understand this information. If you have questions or comments concerning this correspondence,
please contact a servicing team member at (866) 264-9762 or DLcustserv@osla.org
FOR MORE INFORMATION
Federal Student Aid’s coronavirus information page includes information about relief to student loan borrowers, including
those who have defaulted on their federal student loans. Please visit studentaid.gov/coronavirus regularly for updates.
