THE PAUSE ON FEDERAL STUDENT LOAN AND INTEREST PAYMENTS HAS BEEN EXTENDED TO December 31, 2022

The White House and Department of Education recently announced a final extension of the pause on student loan repayment, interest and collections through December 31, 2022. This page will help you prepare to make student loan payments and explain how you can discharge your student loans, if eligible.

Why and when is federal student loan relief ending?

The CARES Act provided broad relief for federal student loan borrowers. Since March 27, 2020, all payments on federally-held student loans have been paused and the interest rate on federal student loans set to zero percent.

On April 6, 2022 the U.S. Department of Education extended the student loan payment pause through August 31, 2022, that student loan payment pause has now been extended through Dec. 31, 2022

The pause includes the following for eligible loans:

• a suspension of loan payments
• a 0% interest rate
• stopped collections on defaulted loans

This “administrative forbearance” allows you to temporarily stop making your monthly loan payment, although you can still make payments if you choose. Recovery of student loan debt from Social Security benefits is suspended during this period.

The U.S. Department of Education has prepared commonly asked questions and answers regarding student concerns, financial aid and student loans including zero interest, forbearance and defaults, as well as additional resources.

Is there a way to discharge my federal student loan if I have a documented disability?

Yes. The Department of Education (ED) announced a new regulation that will allow over 323,000 borrowers who have a total and permanent disability (TPD) to receive automatic student loan discharges. The change will apply to borrowers who are identified through an existing data match with the Social Security Administration (SSA).

Previously, borrowers were required to fill out an application before receiving relief, but this new regulation allows the ED to provide automatic TPD discharges for borrowers who are identified through administrative data matching.

Borrowers who wish to opt out of their discharge for any reason will have an opportunity to do so. All discharges will be free from federal income taxation but there may be some state income tax consequences. Borrowers are encouraged to consult their state’s tax office to understand whether this discharge will be considered income under their state’s tax code.

Is there a way to discharge my federal student loan if I am employed by a U.S. federal, state, local or tribal government or not-for-profit organization?  

Yes. You might be eligible for the Public Service Loan Forgiveness Program (PSLF program) if you work or have worked in public service such as government service (federal, U.S. Military, state, local, or tribal) or certain non-profit organizations, you might be eligible for the Public Service Loan Forgiveness (PSLF) Program.

The PSLF Program forgives the remaining balance on your Direct Loans after you have made 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer. However, you will need to take steps to apply. Use the Public Service Loan Forgiveness (PSLF) Help Tool  to walk you through the steps to determine if you qualify, how to apply and meet all the requirements.

Important Time-limited PSLF Opportunity: Until Oct. 31, 2022: borrowers may receive credit for payments that previously did not qualify for PSLF under a limited time PSLF Waiver.

What do I need to do before the student loan relief ends on December 31?

Before payments resume, the Department of Education advises that you:

• Update your contact information with your loan servicer and in your StudentAid.gov profile. Make sure they have the correct info!
• Check out the ED’s Loan Simulator to explore options for repaying your student loans.
• Consider applying for an income-driven repayment (IDR) plan to make your payments more affordable.

I am not financially able to make my student loan payments in 2022. What can I do?

Paying off student debt can be scary and confusing. If you do not feel financially secure enough to make your student loan payments, talk with you loan provider about repayment plan options. Instead of having a traditional repayment plan, you might qualify for an Income-Driven Repayment Plan, like Pay As You Earn Repayment (PAYE); Income-Based Repayment (IBR); and Income-Contingent Repayment (ICR) Plans.

An important note: Before switching from a traditional repayment plan to an income-driven repayment plan, make sure that you understand how making lower payments might affect your loan interest and the length of time that you will need to make payments. It can be helpful to speak with a certified financial counselor or coach before selecting a student loan repayment plan.