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What We Do Student Loan Repayment During COVID

Student Loan Repayment During COVID

Information & Resources for Borrowers During COVID

The payment suspension on federal student loans owned by the Department of Education has been extended through January 31, 2022.

The federal student loan payment pause covers tens of millions of borrowers. Unfortunately millions more with private student loans and federal loans owned by private companies are left without relief. The SBPC will continue to advocate for meaningful relief for all borrowers. As announcements are made, we will continue to update this page to ensure all borrowers have timely and accurate information.

Tips for Managing Your Student Loans

This interview with SBPC Executive Director Seth Frotman on Good Morning America has helpful tips for borrowers.

Frequently Asked Questions on Student Loan
Repayment Options During COVID-19

Q: How will the extension of the payment suspension on federal student loans owned by the Department of Education affect my student loans?

On August 6, 2021, President Biden signed an Executive Order re-extending the payment suspension on federal loans owned by the Department of Education until January 31, 2022.

The protections offered under the payment pause extension only apply to federal loans owned by the Department of Education (i.e., Direct Loans and ED-held FFELP Loans).

Commercially held FFELP loans, Perkins loans, and private student loans are not covered under the law. Below, you can learn more about what types of loans you have.

If you have federal student loans you will receive the following protections through September 30, 2021:

  • All payments will be suspended on covered federal student loans. Your student loan servicer will automatically suspend all payments due through September 30, 2021. You are NOT required to take any action to have the payment suspension applied to your loans.
  • Borrowers will continue to receive credit towards loan forgiveness. During the payment suspension, you will continue to receive payment count credit toward Public Service Loan Forgiveness (PSLF) and Income-Driven Repayment (IDR) loan forgiveness, as long as you meet all the other requirements to receive credit. For example, a borrower pursuing PSLF would still need to be working full time for a qualified employer during the suspension period.
  • Interest rates on eligible federal loans will be reduced to zero percent. The interest rate on all of your eligible federal student loans will be reduced to zero percent, and this interest rate reduction will be backdated to March 13, 2020. Any payments made after March 13, 2020 will be applied to any previously accrued interest, and then to your principal balance.
  • Collection activities on covered loans will be on pause for the duration of the payment suspension. If your loan is in default, all collections activity, including wage garnishment, federal benefit offsets, and federal tax refund offsets. If you are currently in garnishment, you will need to contact your employer directly to ensure the garnishment is paused.

You can find additional information on the Federal Student Aid website:

Note: Income-Driven Repayment recertification dates that occur during the payment suspension period have been extended by six months

Support for Student Loan Borrowers

For borrowers having problems with their student loans, there are places they can turn for help. Below is a list of state-based resources for borrowers as well as a link to the Consumer Financial Protection Bureau’s Complaint portal where borrowers can submit complaints.

Submit a Complaint to the CFPB

State-Level Student Borrower Support


Advocating for Borrowers & Combating Predatory Practices

Policymakers and private companies have a critical role to play right now in providing relief to student loan borrowers. Our research and analysis below advocates for borrower protections and spotlights mismanagement and predatory practices in the student loan system related to COVID-19:





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