New York stops student loan collections

New York Governor Andrew Cuomo has said he is halting the collection of student loan debt.

Here is what you need to know.

Student loans

As of today, Cuomo and New York Attorney General Letitia James say New York State will temporarily stop collection of student loans owed to New York State and return them to the attorney’s office general for recovery. The shutdown, which will last at least until April 15, 2020 and will also include the collection of medical debts, aims to provide financial relief to families affected by the coronavirus.

“As the financial impact of this emerging crisis increases, we are doing all we can to support the thousands of New Yorkers who are suffering as a result of the disruption caused by the COVID-19 pandemic,” Governor Cuomo said. “This new measure to temporarily suspend collection of debts to the state will help mitigate the negative financial impact of the epidemic on individuals, families, communities and businesses in New York State, as we continue to do everything possible to slow the spread of the virus. ”

What does that mean

This announcement applies to borrowers who have student loan debt on New York State University campuses. Cuomo says he will also automatically suspend interest accrual and fee recovery on all overdue state medical and student debts referred to the attorney general’s office for collection. However, that does not mean that you have to stop paying your student loans. This also does not mean that you receive a student loan discount. This announcement applies instead to the collection of student debts due.

Next steps

the the coronavirus could have a direct impact on your wallet – here are some proactive steps to take. Today’s action could also prompt other states to follow similar temporary plans to help borrowers repay their student debt. President Donald Trump announced that the federal government waive interest on federal student loans held by government agencies. Senator Mitt Romney (R-UT) said the federal government should give $ 1,000 to every American.

What else can you do to pay off your student loans faster and save money during this tough time? Here are four options, all free:

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