Coronavirus Info for Students, Borrowers, and Parents
Questions on Trellis Loans
There are many questions around student loan interest and payments due to recent presidential announcements and new legislation. We are working to keep everyone up to date on the impact to Trellis borrowers.
Please note that while Trellis loans originated with commercial lenders, as a guarantor under this federal program, we still adhere to the Department of Education regulations for the FFEL Program, which set interest rates, terms, and available payment programs and benefits for these loans.
On March 13, 2020, the president announced that interest would be waived on all federally held student loans. While the announcement does include all loans owned by the U.S. Department of Education, it does not include FFEL Program loans that are owned by commercial lenders, such as those guaranteed by Trellis. These loans are not eligible for this benefit at this time.
The CARES Act was signed into law on Friday, March 27th. Similar to the presidential announcement, it does not include FFEL Program loans held by commercial lenders (Trellis loans). However, the CARES Act does impact Trellis borrowers in the following ways:
- As a result of the temporary changes to the Tax Offset Program (TOP), any garnishment of social security payments to borrowers with FFEL Program loans (including Trellis loans) will be suspended until September 21, 2020.
- In addition, the federal stimulus payments to individuals under the CARES Act will not be impacted; meaning the Department of Education will not take these stimulus payments to borrowers with FFEL Program loans (including Trellis loans).
We continue to work with the Department of Education and monitor their announcements for the most recent information. We will provide updates as they become available so you are able to make informed decisions.
Questions on other loans
If you have loans with the Department of Education, you could consolidate your loans not owned by ED into a Direct Consolidation Loan, which would be eligible. However, if you consolidate, and after the 0% interest rate waiver ends, the interest rate may be higher than what you are currently paying, and any outstanding interest will capitalize, meaning that any outstanding interest is added to your principal balance. Your servicer can provide you with information about how your loan balance, interest rate, and total amount paid would change if you consolidated into a Direct Consolidation Loan.
For more information, call us at (800) 845-6267.
For borrowers experiencing long wait periods or complications trying to contact us, other options are available. You can leave a voicemail, or send us an email requesting a call back. Contact us at email@example.com, and include your phone number and case number/account number if you have it.