The recent wildfires in Los Angeles have caused widespread damage, with over 12,000 homes and structures reported destroyed. If you have been affected by the fires, you may be eligible for financial relief, including a break from student loan payments. Federal and private student loan borrowers in impacted areas can access various relief options, potentially easing their financial burden during this difficult time.
For Federal Student Loan Borrowers
Check Your Accounts for Communication
If you’re a federal student loan borrower, it’s important to stay on top of updates from your loan servicer. Make sure your student loan accounts on studentaid.gov are set to receive email notifications, so you don’t miss any important messages. Keep an eye on your inbox for alerts regarding temporary relief measures, as the U.S. Department of Education often contacts affected borrowers after natural disasters.
Request Natural Disaster Forbearance
If you live in a FEMA-designated disaster zone and are unable to make payments, your loan servicer will automatically grant you a 90-day forbearance. This temporary pause prevents your loans from going into default. If you haven’t yet missed a payment, you can also proactively request this relief. While forbearance is helpful if you’re financially impacted, it’s worth noting that interest will continue to accrue during this period, increasing the total amount you’ll owe.
If you’re working toward Public Service Loan Forgiveness (PSLF), the months you’re in forbearance will count toward the 10-year timeline, as long as you’re employed by a qualifying employer during this time.
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Other Federal Relief Options
Even if you’re outside of a FEMA-designated area, you may still qualify for relief. Federal borrowers can call their servicer to ask about a general forbearance or deferment for up to a year. For those who’ve lost their jobs, unemployment deferment is available for up to three years, though interest will accrue during these periods.
Income-driven repayment (IDR) plans offer an alternative by reducing your payments to as low as $0, depending on your income level. If you’re already on an IDR plan, contact your servicer to adjust your payments based on any recent changes in income.
For Private Student Loan Borrowers
Contact Your Lender
Private student loan borrowers also have options, but these vary by lender. Reach out to your lender to discuss your situation and inquire about potential relief options, such as temporary forbearance. While some lenders, like Ascent and Earnest, offer disaster-related forbearance, it’s important to understand that interest may capitalize at the end of the forbearance period, meaning it will be added to your principal balance.
To minimize the impact, try making interest-only payments during forbearance, if possible, to prevent interest from being added to your loan balance.
For Current Students
Work with Your School’s Financial Aid Office
If the wildfires have impacted your family’s financial situation, contact your school’s financial aid office. Inform them about any changes, including displacement due to the fires, and ask if they can reassess your financial aid package. Many schools have emergency funds available that could help you cover expenses.
If the wildfires disrupt your ability to complete the school year, your financial aid office may be able to extend your “in-school” status, preventing you from entering repayment on federal loans.
Additionally, any financial assistance you receive from government disaster relief will not affect your eligibility for future aid. You won’t need to report this support on your Free Application for Federal Student Aid (FAFSA).
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Further Resources and Assistance
If you have questions about student loan relief options or need help navigating the process, several resources are available:
- California’s Student Loan Empowerment Network: This organization offers one-on-one support for California residents. Call 888-774-2227 or visit their website for assistance.
- Student Loan Ombudsperson: If you live in California or certain other states, this office can help with complex loan issues.
- Nonprofit Organizations: The Institute of Student Loan Advisors (TISLA) and similar nonprofits can assist in understanding available relief.
- Your College’s Financial Aid Office: Even if you’ve already graduated, your former school’s financial aid office may still be able to offer advice.
It’s essential to use only free resources when seeking assistance with student loans. Be wary of scammers who may try to charge fees for student loan relief services.
By staying informed and reaching out to the right organizations, you can access the relief you need to manage your student loan payments during this challenging time .
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