Most private student loan servicing companies to suspend payments

Updated: April 2, 2020 at 7:11 p.m.

Most private student loan servicers are suspending payments for up to three months, Inside Higher Ed reported Wednesday.

Scott Buchanan, who represents private loan servicers as the executive director of the Student Loan Servicing Alliance, told Inside Higher Ed that almost all servicing companies are suspending payments amid the COVID-19 pandemic, but it is unclear whether servicers will freeze interest during that time. Private student loans were not included in the COVID-19 relief bill passed last week, which suspends payments and freezes interest for federal student loans.

“Every lender has their own policies and procedures so that’s why students need to call their servicer if they are in distress – if not they can continue to pay so their loans get paid off,” Buchanan told Inside Higher Ed.

Students should contact their loan servicer to take advantage of the extension, Buchanan said in an email to The Hatchet.

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