New York Governor Andrew Cuomo and New York Attorney General Letitia James have temporarily paused collection of defaulted student loan debt owed to the state and referred to the Office of the Attorney General for collection.
They are also suspending any interest from accruing on these loans.
As of now, the suspension will last 30 days until at least April 15, 2020. It may be extended, if necessary.
The goal is to help ease the financial stress caused by the coronavirus.
The suspension applies to student debt owed to State University of New York (SUNY) system campuses as well as other debt owed to the state and referred to the state AG for collection.
It does not apply to other student loan debt, such as federal student loans.
In addition to student loans owed to state institutions, the suspension also includes medical debt. The goal is to provide financial relief for families during this chaotic time.
New York Governor Andrew Cuomo announced in a tweet:
Effective immediately, @NewYorkStateAG & I are suspending state debt collection. NYers with student debt, medical debt & other state-referred debt will have payments frozen for at least 30 days. We’re doing all we can to support those suffering financially due to #COVID19.
New York Attorney General Letitia James announced it in a tweet as well:
Effective immediately, I’m temporarily halting the collection of state medical & student debt owed to NYS that was referred to my office. In this time of crisis, I won’t add undue stress or saddle NYers with unnecessary financial burden, this is the time to support residents.
President Trump has announced he will temporally pause interest from accruing on federal student loans until further notice. There was also proposals of canceling federal student loan payments altogether for the time being, but nothing has moved forward with that currently.
Options for Student Loans
Learn how you can pause student loan payments if you are struggling to make payments.
With interest rates at historic lows, it could also be a time to consider the pros and cons of refinancing student loans. Refinancing private student loans to a lower interest rate can help save money and pay off debt quicker. Compare lenders to see who is right for you. Keep in mind refinancing federal loans means a loss in many great benefits – any federal loan forgiveness programs, income-driven repayment plans, generous deferment options, and more.