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.