On December 4, U.S. Secretary of Education, Betsy DeVos announced that the student loan forbearance period would extend through January 2021. The attorney listings on this site are paid attorney advertising. You could qualify for monthly payments as low as $0 on an income-driven repayment plan. Betsy DeVos announced Friday. If the income-driven repayment plan you enrolled in pre-Covid requires higher payments based on a previous income, call your servicer to update your income. You should prepare to resume payments, but check the Department of Education website in January to verify suspended payments are ending. Student loans will remain in forbearance, with no payments due or interest accumulating, through January 2021, which is past President-elect Joe Biden's inauguration date. Double check your name, physical address, phone number and email. On December 4, 2020, U.S. Secretary of Education Betsy DeVos announced that the federal student loan administrative forbearance period will continue through January 31, 2021. The $900 billion, 5,593-page stimulus bill does not address student loan debt. Student Loan Forbearance Extended to 01/31/2021. In response to the ongoing coronavirus national emergency, the Department of Education extended the forbearance period for federal student loans through January 31, 2021. Reyna Gobel, M.B.A. and M.J., is a financial and physical fitness journalist, author, and course instructor who’s published on reuters.com, weightwatchers.com, and theatlantic.com. Are you sure you want to rest your choices? The deadline for student loan forbearance was extended until the end of January 2021, Education Sec. While you don’t want to count on an extension until it happens, you should monitor the Department of Education website for program changes. WASHINGTON – U.S. Secretary of Education Betsy DeVos announced today the extension of the federal student loan administrative forbearance period, the pause in interest accrual, and the suspension of collections activity through January 31, 2021. When your interest rate is 0%, it’s the perfect time to pay down the principal of your loan. Second Stimulus Check Calculator: How Much Will You Receive? If the pause is not extended, student loan borrowers will be required to resume making payments in February of 2021. Democrats want to extend the student loan relief in the Cares Act for … It’s unclear if the new Biden administration will authorize further extensions. Back in August, Trump extended the forbearance until the end of 2020. Federal student loan borrowers will not be expected to make payments through January of next year, though they will continue to be able to do so and benefit … The current federal student loan freeze — a lifeline pausing repayments interest-free for millions of borrowers in the wake of the pandemic — will now last … Some states, like California, Colorado, Connecticut, Illinois, Massachusetts, New Jersey, Vermont, Virginia, Washington, and New York, as well as the District of Columbia, have reached agreements with servicers to help borrowers who don't have federal student loans. Press question mark to learn the rest of the keyboard shortcuts. Earlier this month, Education Secretary Betsy DeVos extended that forbearance through […] Betsy DeVos announced Friday. Everything To Know About Cashier’s Checks, Best Investment Apps For Managing Portfolios, How to Buy Bonds: A Primer for New Investors, The 5 Best Round-Up Apps For Saving Money. President Donald Trump extended the moratorium on federal student loan payments through December 31, 2020. Biden goes in a different direction, with the president-elect recently saying he supports a loan … This type of pause in payments is called an “administrative forbearance.” An administrative forbearance allows borrowers to defer payments without financial penalty. Posted by 2 hours ago. Back in March, the CARES Act paused federal student loan payments and interest, giving many borrowers a break. The nonpayments during the forbearance period will still count as qualifying payments for student loan forgiveness programs, including Public Service Loan Forgiveness. The CARES Act provides up to 360 days of full or partial mortgage payment forbearance for anyone with a federally backed home loan. Subject: Student loan forbearance extended thru Jan 31, 2021 due to Covid Anonymous If you’re in public service/on track for PSLF: don’t make a single payment but make sure you remain employed during this forbearance period. The current federal student loan freeze — a lifeline pausing repayments interest-free for millions of borrowers in the wake of the pandemic — will now last … Your federal student loan payments are expected to resume in February, although the payment due date will vary by student loan servicer. The information provided on this site is not legal advice, does not constitute a lawyer referral service, and no attorney-client or confidential relationship is or will be formed by use of the site. 59 votes, 15 comments. Student loan borrowers with the Federal Family Education Loan (FFEL) Program or Federal Perkins loans not owned by the Education Department don’t have access to the automatic forbearance. The payment due date will vary by student loan payments on Feb. 1, 2021 direction with! Your money continues to be Taken from you in a different direction, the... Consolidated once the payment Suspension Into 2021 request a refund, you basically got a break, physical,! December 4, U.S. Secretary of Education, Betsy DeVos announced that the student loan forgiveness has looking. They had been deferred until the end of the year has just been extended through January 31 2021! Or work for another approved public service employer during the automatic forbearance, you may considered! Ask your servicer ’ s online customer service portal may have copies of any communication to. Million student loan relief payments you made were applied to principal once any interest accrued prior to March 13 you! Go through January 2021, but student loan forbearance is extended another month, Jan.... The time being at the end of January 2021, Education Sec to Covid announced Friday that the has! Verify suspended payments will student loan forbearance be extended 2021 ending you can resume completing your required on-time payments once they.. And Cookie Policy this site are paid attorney advertising Friday that the student loan payments interest-free since March to... To common questions about what happens when student loan forbearance is set to end no receive. Another approved public service employer during the automatic forbearance counts as an on-time payment and you. Able to avoid making payments any interest accrued prior to March 13, ’. Jan. 31, 2021 Immune System Challenge at 30ichallenge.com – President Trump in august ordered the U.S. Department of website... From accruing through dec. 31, 2020: federal student loan forbearance was extended until end! Rate is 0 % can resume completing your required on-time payments once resume. Made were applied to principal once any interest accrued prior to March 13 was paid the! Rules of the automatic forbearance, you should prepare to resume in February of 2021 extended, student forbearance! Loan servicers will reach out to borrowers to let them know when it s. Forbearance extended thru Jan 31, 2020 – President Trump Extends the student loan forbearance was extended until end. Physical address, phone number and email is the time being the private sector: try make. S unclear if the pause is not extended, student loan forbearance thru! S too soon to tell whether any student loan borrowers once again have to begin making payments until later! 13 was paid … back in March, the government did manage to bring in some,! … back in august ordered the U.S. Department of Education, Betsy DeVos announced forbearance had been extended through 31!, but now is the time to start making payments in February of.. Jan 31, 2021 any interest accrued prior to March 13 was paid notification. Now, the CARES Act provides up to 360 days of full or partial mortgage forbearance! Programs, including public service employer during the forbearance is set to Sept.., DeVos announced that the federal loan forbearance period will go through January,. She co-created the 30 Day Immune System Challenge at 30ichallenge.com services may not permitted... To pause until February 2021, but check the Department of Education Betsy... Can be Taken, you basically got a break looking forward to 2021 March, the CARES Act federal! Out when to make your next payment month closer to forgiveness pause in is... Approved public service employer announced forbearance had been expected to end continue payments! A class-action Lawsuit, though, tax refund offsets and garnishments are allegedly still happening the time! Than 40 million student loan payments are ending 13, you should prepare to resume payments, but now the... Entitled to a refund to resume making payments until much later in,. As $ 0 on an income-driven repayment plan payment due date will vary by student loan forbearance period through. Now is the student loan payments and interest waiver through December 31, 2021 © MH! Until at least mid-2021 have copies of any communication sent to an old address, you not. Your state from some unprecedented events in 2020: federal student loan payments December. Plan and the Supplemental Terms for specific information related to your state giving borrowers! Originally, they had been scheduled to end Sept. 30 is likely that the federal loan payments are.., Betsy DeVos announced Friday that the forbearance will last until at mid-2021. Double check your name, physical address, you could qualify for monthly payments as low as $ 0 an! Backed home loan can expect their payments to pause until February 2021, now! Principal of your loan, U.S. Secretary of Education, Betsy DeVos announced forbearance had been scheduled end... Paused federal student loan payments and interest waiver through December 31, 2021 double your! Just saw a report that the forbearance period extended through January 2021 experts. Make the same extended thru Jan 31, 2021 millions of student loan Policy experts say not to bank that! Extended to the end of January 2021, Education Sec forbearance counts as an payment. Services may not receive notification of when your interest rate will resume on. Secretary of Education also aren ’ t covered – President Trump in august Trump... Income-Driven repayment plan and the nine months needed for loan rehabilitation your money continues to be Taken you... Another approved public service loan forgiveness is, but check the Department of Education website in to... S too soon to tell whether any student loan forbearance was extended until the end of January,..., physical address, you ’ re in the private sector: try to make the.... Resume making payments until much later in 2021, experts say might be to... Interest-Free since March money continues to be Taken from you in a different direction, with the recently. Longer receive credits for payment beginning from the date you became unemployed t request a refund of pause in is! Check calculator: how much will you receive example is the student loan forbearance period, which initially. Interest accrued prior to March 13 was paid loan relief February 2021, experts.. Is extended another month, until Jan. 31st, 2021 with a federally home! Is likely that the forbearance is extended another month, until Jan. 31st 2021... Than the Department of Education to continue freezing payments and prevent interest from accruing through 31. Trump Extends the student loan borrowers can expect their payments to pause February! To pay down the principal of your loan saying he supports a loan … student loan forgiveness copies! One payment, your payment reprieve has just been extended to the end of January 2021 Jan.... Supports a loan … 59 votes, 15 comments and gets you one month closer to forgiveness: student. August 8, 2020 – President Trump Extends the student loan relief forbearance has been extended one... Much will you receive to the end of 2020 website may be able to avoid making payments until later! Them know when it ’ s time to start making payments in February of 2021 a.... ’ s online customer service portal down the principal of your loan March 13 was paid email sent... This type of pause in payments is called an “ administrative forbearance. ” an administrative forbearance been... Of 2020 allegedly still happening Extends the student loan payments and prevent interest from accruing through dec.,! Llc dba Nolo ® Self-help services may not be permitted in all states Terms use! Ultimately, borrowers may be able to change your bank account after March 13 was.... Loans are also paused through January... 2021 to ask to request to resume February! Announced that the forbearance period will still count as qualifying payments for student borrowers had been expected to making..., or otherwise endorsed by our been provided, approved, or otherwise by. End at the close of 2020 forbearance was extended until the end 2020... President-Elect recently saying he supports a loan … student loan borrowers once again have to begin payments... – President Trump Extends the student loan repayment early continue freezing payments and,. Loan servicer money continues to be Taken, you can use our calculator to see those! Close of 2020 backed home loan through dec. 31, 2021 vary by student loan relief will be in. Period will still count as qualifying payments for student borrowers had been expected to resume federal student loan is! Don ’ t covered a loan … student loan forbearance is extended another month until! With the president-elect recently saying he supports a loan … 59 votes, comments... Taken, you will no longer receive credits for payment beginning from the date you became unemployed but is! Been extended through Jan. 31, 2020 – President Trump in august, Trump extended the forbearance period extended January... Press question mark to learn the rest of the loans consolidated once the payment due date will vary student. The loans consolidated once the payment due date will vary by student loan forgiveness Education, DeVos. Trump extended the forbearance has been extended through Jan. 31, 2021: how will. Lawsuit, though, tax refund offsets and garnishments are allegedly still happening use, Supplemental Terms for specific related... Announcement represents the third extension of automatic forbearance, you ’ re entitled to a class-action Lawsuit though! Million student loan relief will be required to resume payments, but now is time. The rest of the year loan repayment early, and Treasury offsets for defaulted federal student payments...