Your NaviRefi Loan and Coronavirus (COVID-19) – What You Need To Know
First and foremost, we're here to help. We want you to know we're making every effort to stay on top of current and recent developments about Coronavirus (COVID-19). Any updates we have will continue to be included in this article.
Please see below for the latest Coronavirus updates related to your NaviRefi loan:
Support For Our Customers
If you're having trouble making payments due to the COVID-19 crisis, there is help. Be sure to contact us here so we can help you understand options that can fit your situation.
Here are some of the options available:
Short-term coronavirus forbearance (beginning July 1, 2020)
We understand that COVID-19 continues to affect many people’s lives. We’ve created a short-term option for customers who contact us for relief on or after July 1, 2020. For a limited time, we are offering a short-term coronavirus forbearance to qualified customers who request it. This program brings your eligible loans current and postpones payments for at least one full month.
The short-term forbearance will not count against your hardship forbearance time. During this time, you will not be responsible for making payments, but interest will continue to accrue. At the end of the short-term forbearance, unpaid interest will not be capitalized (added to your outstanding principal balance). Your Monthly Payment Amount may increase after the forbearance ends to ensure your loans will be paid off within your repayment term.
Coronavirus national emergency forbearance (program discontinued as of June 30, 2020)
In response to the national emergency declared by the President in March 2020, we offered up to three months of disaster forbearance to qualified customers who made their request no later than June 30, 2020. This program brings your eligible loans current and postpones payments for up to three months.
During this time, interest accrues but will not be capitalized (added to the unpaid principal) at the end of the forbearance period. (Please note if the accrued interest is not paid and you use a different type of forbearance or deferment in the future, the interest could be capitalized at that future time.) While no payments are required during the forbearance period, you can always make extra payments to help lower the overall cost of your loan.
Additional short-term and long-term relief is available to assist customers who experience difficulty due to the COVID-19 pandemic and its effects on the economy.
Other programs that may assist you
- Short-Term Interest Only Program – This program will allow you to make a lower, interest-only payment on your loan for up to three months. The interest-only period will not count against your maximum repayment term. Although making reduced payments has drawbacks, the impact to your total cost and Monthly Payment Amount are less significant than when you completely postpone payments. (Note that the Short-Term Interest Only Program is offered on a limited-time basis.)
- Rate Reduction Program – We also offer a temporary Rate Reduction Program to qualified borrowers that reduces the interest rate and lowers the Monthly Payment Amount.
Making a payment, even a reduced one, is always the best thing long-term as interest continues to accrue. Forbearance will ease the burden of required payments, but making some payments still saves money in the long run. Learn more about repayment options for NaviRefi loans.
Frequently Asked Questions
What are the drawbacks of using forbearance?
Even though interest will not be capitalized at the end of the coronavirus forbearance, there are other considerations you should be aware of. Your Monthly Payment Amount and total cost of your loan may increase due to the additional interest accrued during the forbearance. Your estimated payoff date will be extended by forbearance because the period of forbearance is not considered part of your repayment period.
How long will you offer these coronavirus forbearance programs?
These are limited-time programs. Our original three-month coronavirus national emergency forbearance was discontinued as of June 30, 2020. The new short-term coronavirus forbearance began on July 1, 2020 and will be evaluated on an ongoing basis. We expect that the short-term coronavirus forbearance program will be phased out over time, as the country reopens for business.
What if I'm still experiencing difficulty at the end of my forbearance?
We strongly encourage you to explore your long-term options as soon as possible. There are several existing programs for customers who are experiencing difficulty but can pay a reduced payment amount.
You may be eligible for a standard hardship forbearance if your difficulty is unrelated to coronavirus or its impact on the economy but note that all normal terms and conditions (including capitalization of interest) would apply. Please contact us here if you are nearing the end of your coronavirus forbearance and anticipate difficulty making payments.
Why isn't a private education loan eligible for the temporary interest waiver announced by the White House on March 13, 2020?
The interest waiver announced by the White House is for federally held student loans only. Private education loans are not federally owned or guaranteed. Many of our customers have federally owned loans in addition to private student loans, so other options may be available for those loans.
With this forbearance, will my loans be reported negatively to the credit bureaus?
No. We follow industry standards for credit reporting. Consistent with those standards, we will report loans enrolled in the coronavirus disaster forbearance program as "current" with a payment history of "deferred" and a special comment of "affected by natural or declared disaster." Keep in mind that delinquency reported prior to your coronavirus-related hardship will remain on your credit report.
We cannot provide advice on how credit scores are calculated; we report specific loan information to credit bureaus. Credit scores are available through several companies using confidential and proprietary methods. If you have questions about a specific credit score, please contact the company that issued it.