Student loan borrowers impacted by the wildfires in Southern California can receive temporary relief from payments due to the natural disaster. The Heroes Act of 2003 provides several forms of relief, including natural disaster forbearance, which can pause payments for up to 90 days. The U.S. Department of Education may automatically enroll qualifying borrowers in forbearance.
Federal student loan borrowers affected by the wildfires ripping across Southern California have options if they're worried about paying their bills. Borrowers impacted by natural disasters may qualify for temporary relief from student loan payments, said Carolina Rodriguez, director of the Education Debt Consumer Assistance Program, based in New York. It's a good idea for borrowers to familiarize themselves with the relief available to them in case they should need it, experts said.
The Heroes Act of 2003 provides several forms of relief to certain student loan borrowers who live in or are employed in an area that is affected by a natural disaster, said higher education expert Mark Kantrowitz. Likely one of the most helpful options will be a natural disaster forbearance. Climate change has affected the frequency and severity of natural disasters, making these waivers and forbearances increasingly important, Kantrowitz said. In many cases, the U.S. Department of Education will automatically put qualifying borrowers into a natural disaster forbearance, Kantrowitz said. Borrowers generally do not need to apply for this, he added. Still, borrowers who want to make sure their payments are paused might want to contact their loan servicer. The natural disaster forbearance lasts for up to 90 days, according to the Education Department. In some cases, borrowers will be granted 30-day extensions. However, the forbearance can't exceed 12 monthly billing cycles from the date of the disaster. (Loan interest continues to accrue during the payment pause
STUDENT LOANS WILDFIRES DISASTER RELIEF FORBEARANCE EDUCATION DEPARTMENT
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