The COVID-19 national emergency has caused unprecedented economic disruption. The federal government was quick to enact relief measures for federal student loan borrowers who may be experiencing financial hardship as a result of the pandemic. Last week, New York became the first state to announce relief measures specifically designed to aid private student loan borrowers.
Despite similarities between the relief measures announced by the federal government and New York, there are also notable differences, including whether servicers are required to provide relief and whether relief measures will be automatically applied to borrower accounts. This Legal Update provides an overview of relief measures applicable to federal and private student loans, critical differences between them, and things to watch for as other states consider adopting similar relief measures in response to COVID-19.