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COVID–19 National Emergency Private Education Loan Repayment Assistance

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COVID–19 National Emergency Private Education Loan Repayment Assistance

Anyone else looking through the proposal on private loans in the proposed stimulus? https://appropriations.house.gov/sites/democrats.appropriations.house.gov/files/COVIDSUPP3_xml.pdf 

 

 

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Re: COVID–19 National Emergency Private Education Loan Repayment Assistance

Hoping to get someone else's more experience non-sleep deprived mind to evaluate this but hopefully, a few bullet points before will help. My gut tells me they are up to something with defaulted private student loans. 

 

There’s 2 different plans to handle private loans but I haven’t figured out how they’ll determine which loan goes where.

So the 10k straight up applied to your account in like 9 months. Didn’t waste the brainpower on this one too much.

The 6 monthly payments plan caught my eye. It says they’ll mail notifications to the borrowers on the account (assuming the contact information is correct). They say there will be an option to opt-out of the program using that notification but payments will proceed if the borrower does not respond.

 

Now swing over to page 613, paragraph 3. Finish para 3 on the next page. That clearly states that any payments they make with be the same as if the borrower made the payment to the credit bureaus.

 

Now page 616 paragraph 2. I need to draw a flowchart to figure out what they’re trying to list but I think it’s saying for defaulted loans are subject to receiving payments, no payments made, or throwing the account into forbearance all equal an event that impacts the calculation of the statutes of limitations... No payment should be noted there with clear language about SL.

 

Page 617 paragraph 5. A backward way of saying if no one does anything, it’s still considered an impact when calculating SL...

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Re: COVID–19 National Emergency Private Education Loan Repayment Assistance

I could not find a way to delete the post but this bill died in the House. That was my first time looking at an actual bill making its way through Congress. One thing that I think is worth noting is that the final file appeared to be generated via a database that contained all the different sections. The format on all 1,440 pages was uniform while fonts were slightly different in some areas. My point is that the language included in this version is present in the database being used. If things circle back to this in the future then it is worth another look to determine the goal.

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