On January 20, 2021, President Biden signed an executive order extending pandemic-related student loan relief to September 30, 2021. That relief was originally set to expire on January 31, 2021.
Here’s what you need to know:
- All payments, interest, and collections on government-held federal student loans will continue to be suspended through September 30, 2021.
- The relief only applies to government-held student loans — not commercially-held FFEL loans, Perkins loans, or private student loans.
- The U.S. Department of Education confirmed that the months of suspended student loan payments will continue to count towards loan rehabilitation and loan forgiveness programs, including Public Service Loan Forgiveness, for those who are otherwise meeting all eligibility criteria.
- President Biden suggested that the moratorium could be extended further, although a decision on that would be unlikely until much closer to September 30, and will likely depend on economic and pandemic conditions at that time.
- Additional student loan relief measures have, so far, not been included in new federal stimulus proposals. That could change as work on a new stimulus package continues in Congress. In addition, lawmakers could introduce new student loan reform measures through separate legislation, a prospect that the Biden administration has suggested.