As part of the CARES Act, in March 2020 Congress paused payments, interest, and collection efforts for most federal student loan borrowers. Since then, the White House has extended the payment pause several times.
The pause includes the following relief measures for eligible loans:
- A suspension of loan payments
- A 0% interest rate
- Stopped collections on defaulted loans
The most recent extension, announced on November 20, 2022 will alleviate uncertainty for borrowers as the Biden-Harris Administration asks the Supreme Court to review the lower-court orders that are preventing the Department from providing debt relief for tens of millions of Americans.
Payments will resume 60 days after the Department is permitted to implement the program or the litigation is resolved. If the program has not been implemented and the litigation has not been resolved by June 30, 2023 – payments will resume 60 days after that.
Text STUDENTDEBT to 48744 for updates about payment resumption.
What to Expect When Payments Resume
How to Prepare for Payment Resumption
Update your contact information
- Your servicer will need current contact information to notify you about upcoming payments. Make sure your servicer has the correct email address, telephone number, and mailing address. If you do not know who your servicer is, log into your studentaid.gov account with your FSA ID.
- The Department of Education will need current contact information to notify you about the resumption of payment. Update your contact information on your studentaid.gov account today!
Enroll in or recertify your Income Driven Repayment (IDR) Plan
- If you are already enrolled in an IDR plan, your servicer will let you know if it is time for your annual recertification. If your income and/or family size has changed, your required monthly payment amount may increase or decrease.
- If you cannot afford your payment amount under your current IDR plan, explore other IDR plans here and submit an application for the one that best fits your needs. NEA members can receive free personalized advice about IDR plans from student debt experts using our Student Debt Navigator.
- If you are not enrolled in an IDR plan, explore the IDR plans here and submit an application for the one that best fits your needs. NEA members can receive free personalized advice about IDR plans from student debt experts using our Student Debt Navigator.
Get help if your loans are in default
- Getting your loans in good standing and making payments now can get you on the path towards PSLF and other forgiveness programs. The Biden Administration has developed a life-changing program that will bring borrowers out of default and give them access to PSLF, called Fresh Start. Learn more about getting a Fresh Start here.
Do not ignore messages from your servicer
- Payment will be due soon after you receive notice about the payment resumption. To ensure you make your payments on time, open and read every message you receive from your servicer.
- Missed payments can quickly become a problem. Missed payments do not count towards PSLF, unless you repay the amount due within 15 days of the due date. If you miss your payment due date, your loan will become delinquent until you repay the amount due. Your servicer is likely to report delinquency to the credit bureaus after 90 days, and your loan can risk going into default if it remains delinquent.