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.