The Eaton Fire engulfs a house as it burns through the area on January 8, 2025, in Altadena, California.
Justin Sullivan | Getty Images
federal student loans Borrowers affected by this Wildfires sweep through Southern California If they are worried about being unable to continue making payments after recovery, relief options are available.
The same applies to other people People saddled with education debt find themselves battling extreme weather and climate disasters.
“Borrowers impacted by natural disasters may be eligible for temporary relief on their student loans,” said Carolina Rodriguez, director of the New York Education Debt Consumer Assistance Program.
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Experts say borrowers would be wise to familiarize themselves with the relief available to them in case they need it.
A record 28 multi-billion dollar disasters occurred in the United States in 2023, including wildfires, droughts and tornadoes, according to NOAA. As of November 2024, 24 weather and climate disaster events have been confirmed, with losses exceeding US$1 billion each.
Here’s what federal student loan holders should know about their options during a natural disaster.
How natural disaster tolerance works
Higher education expert Mark Kantrowitz said the HEROES Act of 2003 provides certain student loan borrowers who live in or work in areas affected by natural disasters with “Multiple forms of relief.” One of the most helpful options may be to tolerate natural disasters.
“Climate change is affecting the frequency and severity of natural disasters, making these exemptions and tolerances increasingly important,” Kantrowitz said.
exist Student Aid Networkthe U.S. Department of Education said its federal student loan servicer will examine Federal Emergency Management Agency Visit the website at least once each business day to identify all affected areas associated with a disaster declaration.
In many cases, the Department of Education automatically places eligible borrowers into natural disaster forbearance, Kantrowitz said.
The Eaton Fire engulfs a house as it burns through the area on January 8, 2025, in Altadena, California.
Justin Sullivan | Getty Images
“Borrowers generally do not need to apply,” he added. However, borrowers who want to secure a payment moratorium may need to contact their loan servicer.
According to the Ministry of Education, the natural disaster tolerance period can last up to 90 days. In some cases, borrowers will receive a 30-day extension. However, the forbearance cannot exceed 12 monthly billing cycles from the date of the disaster. (Loan interest continues to accrue during the moratorium.)
In the meantime, those who want to decline automatic natural disaster relief because they have the ability to pay should contact the Department of Education to do so.
Relief for current students, delinquent borrowers
Borrowers who were students at the time of the natural disaster may continue to qualify for loans On-campus extensionEven if they can’t finish the school year, Kantrowitz said.
If you are in default on a student loan and are affected, you or a family member can contact the Department of Education and request a three-month moratorium on collection activities.
“Documentation may not be necessary”
Your loan servicer may require certain documentation to verify your eligibility for deferment, but you should be granted a deferment period if the disaster makes it difficult or impossible to obtain such documentation.
“Documents may not be necessary given that they are often lost during natural disasters,” Kantrowitz said. “You only need to prove that you are the affected individual. The request can be made verbally and does not need to be in writing.” (Indicated You could be affected as easily as providing your home or workplace address.)
Climate change affects the frequency and severity of natural disasters, making these exemptions and tolerances increasingly important.
Mark Kantrowitz
higher education expert
If you lost any student loan records in a disaster, you may be able to access your Student Aid Network account.
Borrowers who don’t qualify may have other relief options
If the federal government has not declared a natural disaster, or borrowers are deemed ineligible for a payment deferral for some reason, they can still request a payment moratorium. general tolerance EDCAP’s Rodriguez said they work with their service providers.
Borrowers should keep in mind that their debt may continue to accrue interest during the forgiveness period, and they may not be able to access credit from debt relief programs when they don’t make payments, she added.
Your private student loans may reduce disaster relief options, Rodriguez said.
Still, she said, “it is necessary to contact private lenders as soon as possible to explore available remedies and prevent delinquencies or defaults.”
