Secretary DeVos Extends Forbearance On Student Loans To Jan 31, 2021 In Response To National COVID-19 Emergency

WASHINGTON – U.S. Secretary of Education Betsy DeVos today announced the extension of the administrative forbearance period for federal student loans, the suspension of accrued interest and the suspension of collection activities until January 31, 2021.

Federal student loan borrowers will not be expected to make payments until January of next year, although they can continue to do so and benefit from the 0% interest rate when they pay back the principal. Non-payments will continue to be factored into the number of payments required under an income-based repayment plan, loan rehabilitation agreement, or the civil service loan forgiveness program. .

“The coronavirus pandemic has presented challenges for many students and borrowers, and this temporary pause in payments will help those who have been affected,” Secretary DeVos said. “Overtime also allows Congress to do its job and determine what action it deems necessary and appropriate. Congress, not the executive branch, is in charge of student loan policy.

The FSA is now working with Federal Student Loans Services to advise borrowers that current relief measures will continue until the end of January. In March 2020, Secretary DeVos called on employers to suspend payday garnishments for borrowers with overdue federal student loans. This instruction remains in place, and all defaulting borrowers who continue to have their wages garnished will receive repayments.

Upon President Trump’s declaration on March 13, 2020 of a national emergency resulting from the COVID-19 pandemic, Secretary DeVos immediately used her authority under the HEROES Act of 2003 to set all rates at zero. federal student loan interest and automatically enroll borrowers in administrative forbearance. , allowing them to defer payments without financial penalty. On August 21, Secretary DeVos complied with President Trump’s August 8 memorandum on emergency federal student loan relief by extending the borrower benefits of the CARES Act until December 31, 2020.

The Department continues to update ed.gov/coronavirus with information about COVID-19 for students, parents, educators and local leaders. For more information on COVID-19, please visit the following websites: coronavirus.gov, cdc.gov/coronavirus/2019-ncov/index.html, and usa.gov/coronavirus.

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