Update on Federal Student Loan Repayment and Cancellation

Payments and interest on most federal student loans have been paused since early 2020, when the Trump Administration introduced the policy due to the emerging pandemic. Since then, the pause has been extended multiple times and was slated to end August 31, 2022.

Confirming months of speculation, the Biden Administration announced on August 24, 2022 an extension of the payment pause as well as plans to cancel a portion of federal student loan debt. Measures include:

  • The payment and interest pause on federal student loan payments will have a “final” extension through December 31, 2022, at which point payments and interest will resume.
  • Federal student loan borrowers who earn less than $125,000 per year, or households earning less than $250,000, are eligible for debt cancellation up to $20,000 for Pell Grant recipients and up to $10,000 for non-Pell Grant recipients.
  • Visit the Federal Student Aid website at studentaid.gov for details.

Frequently Asked Questions

On August 24, 2022 the Biden Administration announced an extension of the federal student loan payment and interest pause along with plans to cancel a portion of federal student loan debt. Measures include the following:

  • The payment and interest pause on federal student loan payments will be extended through December 31, 2022, at which point payments and interest will resume.
  • Federal student loan borrowers who earn less than $125,000 per year, or households earning less than $250,000, are eligible for debt cancellation up to $20,000 for Pell Grant recipients and up to $10,000 for non-Pell Grant recipients.
Visit studentaid.gov for more information or contact the servicer of your federal student loans to get specific information related to how these measures will impact your federal student loans.

Contact the servicer of your federal student loans to determine if your federal student loans qualify for cancellation, and if so, what steps you need to take.

The measures announced by the Biden Administration are strictly tied to federal student loans and have no impact on your private student loans (including those you may have with a credit union). Many private student loan borrowers also have federal student loans. If you are in this situation, we encourage you to contact your federal student loan servicer to see if you qualify for some level of cancellation on your federal student loan debt.

Federal student loans are made and funded directly by the federal government. Private student loans are made and funded by private lenders, such as credit unions, banks, and online lenders.

No, the cancellation is strictly tied to existing federal student loans. If you opted to refinance your federal student loans into a private student loan in order to gain a lower rate or longer repayment term, that new refinance loan is not eligible for cancellation.