What You Need to Know About Pausing Loans Amid the Pandemic

If you've been financially impacted by the coronavirus, TCU offers loan deferment among its relief measures — and information to help you evaluate whether postponing payment is right for you.

TCU is offering relief measures to assist those who are experiencing a loss of income during these trying times.

Before deferring a payment, it’s important to know how this option might impact your loan in the future.

Loan Payment Deferment (closed end loans and non-mortgage loans only)

If you choose to skip a payment and take a loan payment deferral, the interest will continue to accumulate on your loan. The next loan payment you make after the deferral will be applied to interest owed first, and then to the principal balance. This will not cause a change in the amount of your monthly payment, but it will impact how much you pay over the term of the loan and the total number of payments.

The example, shown above, illustrates how deferring payments 13 and 14 affects the principal and interest in payment 15. More of the payment is applied to interest in payment 15 and less to the principal. Rather than a 72-month term, the loan will now be paid over 75 months.

Mortgage Forbearance and Repayment Options

TCU is also offering a 90-day mortgage forbearance for qualifying members who have experienced a hardship due to the COVID-19 crisis. Depending on your specific situation, solutions vary. After the forbearance period, a TCU representative will discuss the solution that best meets your needs to get your mortgage back on track. Repayment options may include:

  • Extending the term of your loan by the number of suspended payments by modifying the maturity date of your loan

  • Increasing your regular payment amount for a specific period to bring your loan current

  • Capitalizing the interest and escrow payments due (if applicable) to your principal balance and extending the term to achieve a payment as close to your original payment      

In addition, if your hardship remains unresolved, it may be necessary to extend your forbearance period.

If you have questions about a loan deferral, please call TCU Member Services at (800) 552-4745.