Under the “Coronavirus Aid, Relief, and Economic Security Act” (CARES Act), qualifying federal student were automatically placed into “administrative forbearance.” Borrowers are not required to make payments through September 30, 2020. However, apparently some federal student loan servicers have been reporting borrowers in the administrative forbearance as delinquent to the credit reporting agencies.
Federal law called the Fair Credit Reporting Act (FCRA) governs how the credit reporting agencies handle consumer credit information. The FCRA is intended to protect the accuracy and privacy of consumer credit information. The FCRA mandates that credit reporting agencies and the entities that report credit information to them (called “furnishers”) to ensure that credit information is fair, accurate and kept private. The FCRA provides consumers with the right to access and correct any inaccuracies.
If you have a federal student loan in administrative forbearance under the CARES Act, contact a consumer protection attorney today to discuss your rights and your options.
If you need help resolving a student loan issue, contact us today to see what we can do for you.