As wildfires devastate Southern California, particularly in Altadena, federal student loan borrowers impacted by natural disasters have access to relief options to help manage their payments during recovery. According to Carolina Rodriguez, director of the Education Debt Consumer Assistance Program, borrowers affected by such events may qualify for temporary relief under the Heroes Act of 2003, which provides various forms of aid, including natural disaster forbearance.
The U.S. Education Department automatically identifies eligible borrowers using Federal Emergency Management Agency data, potentially placing them in a forbearance arrangement that pauses payments for up to 90 days, with possible 30-day extensions, although interest continues to accrue. Students currently enrolled in school may qualify for in-school deferments even if they cannot complete their studies due to the disaster.
For borrowers in default, they can request a three-month suspension of collection efforts. While some documentation might be necessary for verification, the process is simplified due to the nature of disasters. Those with private loans are advised to contact lenders directly to explore relief options, though choices may be more limited. Awareness of these resources is crucial as climate change increases the frequency of such disasters.
