Councillor calls for payment freeze on student loans

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A Galway city councillor is calling on banks and financial lenders to extend payment moratorium measures to student loans amid the Covid-19 crisis.

Councillor Clodagh Higgins has today called on banks to freeze payments and interest on all student loans for a three-month period akin to the measures introduced by the retail banks for mortgages and business loans.

Councillor Higgins said, “It is a necessity that the banking institutions play their part in ensuring they put in place measures to help everyone who is suffering financially during this pandemic”.

She said that students are deeply concerned right now, and that it is “imperative” that a solution be found so that their credit rating is not ruined in this crisis.

“Many students rely on part-time roles in the retail and hospitality sectors but given that many have closed they have also lost employment,” Clodagh Higgins said.

“Therefore, it is crucial that there are no repercussions for students when they may want to get a loan or mortgage at a later stage”.

“I welcome that the five retail banking institutions have committed to flexible arrangements including payment break for mortgages and loans, however it is imperative that student loans are included in this.”

“That is precisely why I have written to the pillar banks insisting on a payments and interest freeze for students”.