New York Stops Collection Of Student Loan Debt

New York state Gov. Andrew Cuomo (Photo by David Dee Delgado/Getty Images)

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New York Governor Andrew Cuomo says he’s halting collection of student loan debt.

Here’s what you need to know.

Student Loans

Effective immediately, Cuomo and New York Attorney General Letitia James say that New York state will temporarily halt the collection of student loan debt owed to the State of New York and referred to the Office of the Attorney General for collection. The halt, which will last until at least April 15, 2020 and also will include collection of medical debt, is intended to provide financial relief for families who are impacted by the coronavirus.

“As the financial impact of this emerging crisis grows, we are doing everything we can to support the thousands of New Yorkers that are suffering due to disruptions caused by the COVID-19 pandemic,” Governor Cuomo said. “This new action to temporarily suspend the collection of debt owed to the state will help mitigate the adverse financial impact of the outbreak on individuals, families, communities and businesses in New York State, as we continue to do everything we can to slow the spread of the virus.” 

What This Means

This announcement applies to borrowers who owe student loan debt to State University of New York campuses. Cuomo says he will also automatically suspend the accrual of interest and collection of fees on all outstanding state medical and student debt referred to the Office of the Attorney General for collection. However, this does not mean that you should stop paying your student loans. It also doesn’t mean that you will receive student loan forgiveness. Rather, this announcement applies to collection of student loan debt owed.

Next Steps

The coronavirus could directly impact your wallet – here are some proactive steps to take. Today’s action also could spur other states to follow with similar temporary plans to help borrowers pay off student loan debt. President Donald Trump announced the federal government will waive interest on federal student loans held by government agencies. Sen. Mitt Romney (R-UT) has said that the federal government should give $1,000 to every American.

Related: Compare Student Loan Refinancing Rates For 2020

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