Student Loans and Higher Education

What relief is provided to federal student loan borrowers?

Borrowers do not need to make payments on student loans held by the federal government (Direct Loans and Federal Family Education Loans (FFEL) held by the U.S. Department of Education) through September 30, 2021. No interest will accrue on such loans for the same time period. Borrowers with commercially-held FFEL loans and Perkins Loans are not eligible, and private student loan borrowers are also not eligible.

Borrowers will not be subject to involuntary collections (garnishment of wages, tax refunds, and Social Security benefits) and will not have any negative credit reporting for late payments during this time period. Student borrowers will continue to receive credit toward Public Service Loan Forgiveness, Income-Driven Repayment forgiveness, and loan rehabilitation even though they will not be making payments. If borrowers want to continue making payments during this time to pay down principal and previously accrued interest (since no interest is accruing as of March 13, 2020) they are free to do so.


When will payments resume for federal student loan borrowers?

The 0% interest period and suspension of payments are currently scheduled to end on September 30, 2021. Both Federal Student Aid and your servicer will contact you ahead of time to remind you that you need to start making payments again. Make sure your contact information is up to date in your loan servicer account profile. Borrowers will be given the option to enroll in other relief programs (such as income-driven repayment, which can lower a borrower’s monthly payment).


Does the six-month suspension of payments and waiver of interest apply to borrowers who have federally guaranteed but commercially held loans through the FFEL and Perkins Loan Programs

No. The suspension only applies to all Direct Loans and FFEL loans held by the Department of Education.


Does the sixty-month protection from involuntary collections apply to these FFEL and Perkins borrowers



What forms of relief are students impacted by COVID-19 eligible for?

Students will be eligible for emergency financial aid grants from their institutions to meet unexpected and urgent needs related to the coronavirus, such as expenses related to food, housing, course materials, technology, health care, and child care. Students who are currently participating in the Federal Work Study program can continue to receive work-study payments from their institution if they are unable to work due to workplace closures.

Relief also exists for students who must drop out of school due to COVID-19. Students will have the portion of their student loan taken out for the semester (or equivalent) canceled. Further, students who received a Pell Grant or subsidized student loan will not have those types of financial aid counted toward their lifetime limits.