UC Student Loan Relief and COVID-19
The University of California Office of the President established the UC Student Loan Relief to mirror the CARES Act under the Department of Education. The UC Student Loan Relief program will allow our students to have an Administrative Forbearance option available to manage their Campus-Based Loan (Institutional Loan) due to COVID-19. Please refer below for further information.
Institutional Loans (excludes Perkins Loans)**
- UC suspends interest accrual on all Dream Loans and Institutional loans from April 15, 2020 through May 1, 2022.
- UC ceases charging late fees on Dream Loans and Institutional Loans. Late fee assessment stopped from April 15, 2020 through May 1, 2022. Late fees already assessed remain on the account. In addition, UC would cease charging late fees on the $73M it holds in Health Resources and Services Association (HRSA) Loans.*
- UC will apply an Administrative Forbearance (ceasing collection entirely) upon borrower request for Dream Loans and Institutional Loans. All borrowers except HRSA borrowers who are delinquent in payments will be automatically put into forbearance. UC decided to ask students to request the forbearance if they are not delinquent on payments because doing so across the board would be a disservice to those who are not having challenges repaying their loans by introducing administrative hassles (e.g., having to reestablish electronic payments through UC's student loan servicer). Administrative Forbearance from April 15, 2020 through May 1, 2022.
- UC ceases turning loans over to collections until further notice. The State Franchise Tax Board has also ceased tax refund garnishment on UC loans from March 26 through July 15. UC discontinued tax offset through at least July 31, 2022.
- Borrowers will be notified via email about these actions by UC's loan servicer.
- The Department of Education has extended their CARES Act Guidance in an December 22, 2021 Electronic Announcement. The guidance continues the student loan relief through May 1, 2022. UC San Diego has received approval from the UCOP Budget Office to extend the guidance for Dream Loans and Institutional Loans.
*The other benefits outlined in this memo (e.g., ceasing interest accrual) requires federal permission for HRSA loans.
**Perkins Loans
-
-
-
- UC suspends interest accrual from April 15, 2020 to January 31, 2021. This includes loans that are in good standing, delinquent, or in default.
- UC ceases turning loans over to collection until January 31, 2021. UC has ceased tax refund garnishment on Perkins Loans at least through July 31, 2021.
- UC ceases charging late fees from April 15, 2020 to January 31, 2021.
- UC will apply an Administrative Forbearance (ceasing collection entirely) upon borrower request for Perkins Loans until January 31, 2021. UC decided to ask students to request the forbearance if they are not delinquent on payments because doing so across the board would be a disservice to those who are not having challenges repaying their loans by introducing administrative hassles (e.g., having to reestablish electronic payments through UC's student loan servicer).