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 by both the Trump and Biden Administrations.
On August 24, 2022, the Biden Administration announced an extension of the payment pause as well as plans to cancel a portion of federal student loan debt (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).
On November 22, 2022, the Biden Administration extended the payment and interest pause on federal student loans to no later than June 30, 2023, pending the outcome of legal challenges to the Administration’s proposed federal student loan debt cancellation measures.
For the latest details, visit the Federal Student Aid website at studentaid.gov or contact your federal student loan servicer.