The global coronavirus pandemic has wreaked havoc on economies around the world, a people struggling with job loss, salary cuts, the shutting down of their businesses and mounting debts. At this time, one of the debt burdens that many in the United States are facing is student loans. 

While the US government has passed the CARES Act (Coronavirus Aid, Relief and Economic Security Act), which has suspended the payment (without accrued interest) on all Federal student loans held by the Department of Education for the next 6 months, private lenders continue to hound beleaguered Americans to pay back their student loans. This means that those who took loans from companies such as SoFi, Wells Fargo and Sallie Mae - to name a few - will not get any debt relief during this difficult period. 

Managing Your Student Loans

If you are among the millions who have not gotten relief from the CARES Act, there here is what you should do to manage your student loans during the Coronavirus pandemic.

• Continue to Pay

If you are able to, then it is best to continue to pay your student loan. However, since we do not know what the long-term economic impact of this pandemic is going to be, it is best to ensure that you also build up on savings as much as you can. Spending at this time is a very bad idea. 

• Deferment and Forbearance

One option that you can look into are the deferment and forbearance programs. In these programs, those who have borrowed money for student loans are allowed to pause their payments but still maintain their good standing. These programs are applicable for times of economic hardship, so check with your lender if they can offer these programs to you. However, most private lenders will not stop the interest on the loans, so be prepared to pay higher prices once the period of the loan deferment or forbearance is over. 

• Hardship Modifications

While private lenders do not offer many options to those of you who are struggling to pay off your student loans, another option that you can try is the hardship modification. 

Many private lenders - if you talk to them about your situation - will be willing to temporarily reduce your monthly payments. However, since these modifications are discretionary, it is wise to build a strong case about how your finances have been impacted by the coronavirus pandemic. And it is also wise to remember that many of these lenders will then increase your payments once this modification phase ends. So, if they do agree to lower your payment plan, then do ensure that you clarify all the terms and conditions of the modification so that there are no surprises later. 

• Student Loan Settlement

If you have no other choice, then look at whether your lender would be willing to negotiate a student loan settlement. Once again, it will be at the discretion of the lender to grant you a settlement or not. That decision will be largely dependent on your ability to repay your loan, and usually this settlement is accepted only if you have already defaulted on your loans or are about to default. 

If you are able to present a strong case of long-term financial hardship, then you may be able to get them to agree to a settlement. 

Having said that, this should be your last choice. Most of the time, it is easier to get your loan slowly back in good standing rather than paying a settlement. 

• Get Legal Help

If you have tried to look for all options with your lender and they are still not willing to give you some relief from your student loans, then get in touch with an attorney - someone who specializes in student loans.  

Help is On the Way

According to the SLBA, there are some states that have taken action to help those of you that are being crushed by student loans from private lenders during this terrible time. These lenders are now offering the following types of relief:

• 90 days' forbearance (which means that payments will not be due for 90 days)

• Late payment fees will be waived

• There will be no negative credit reporting during this time

• Debt collection lawsuits will be stopped for a period of 90 days

• Helping you enroll in any assistance programs that you may be eligible for 

Please check the SLBA website for the full list of states and lenders who have agreed to offer these relief measures to their customers.  

At the end of the day, the best thing you can do right now if your loan provider is a private company is to call them up and find out what they can do to help you with your student loan payments.