Sallie Mae is giving a three-month payment forgiveness period on private student loans for the coronavirus emergency. But will the loan's interest still accrue?
Yes, interest will still accrue, according to Sallie Mae spokeswoman Ashley Boucher.
WHAT WE FOUND:
Boucher said borrowers in financial difficulty from the pandemic can request a three-month suspension of student loan payments.
Interest will accrue, but it will not be “capitalized,” she said. This means that the interest is not added to the principal balance of the loan. In other words, someone won’t pay interest on the interest.
Even if there wasn't a COVID-19 pandemic, customers in financial distress could contact Sallie Mae to try and arrange new terms for their loan.
“We work with them to understand their financial circumstances and identify any available alternative arrangements designed to reduce monthly payment obligations,” Boucher said.
She said Sallie Mae is emailing all customers to let them know assistance is available.
Customers can contact Sallie Mae through chat with a customer service representative at SallieMae.com, via its app, or by calling 800-4-SALLIE (800-472-5543).
Something you’d like VERIFIED? Click here to submit your story.
More COVID-19 VERIFYs:
- RELATED: VERIFY: Coronavirus victims cannot donate organs
- RELATED: VERIFY: Yes, the US sent about 18 tons of medical supplies to China in early February
- RELATED: VERIFY: Don't use soap to wash your produce
- RELATED: VERIFY: Don't stop taking your asthma medication
- RELATED: VERIFY: Can hand sanitizer change skin pH levels, making you more vulnerable to coronavirus?
- RELATED: VERIFY: There's little chance petting animals will spread coronavirus
- RELATED: VERIFY: Are healthcare workers required to wear personal protective equipment?