Loan Repayment Pause Extended… Again!
Good news for federal student loan borrowers! Yesterday, the U.S. Department of Education (ED) announced an extension of the pause on student loan repayment, interest, and collections. This marks the 8th time the administrative forbearance has been extended since March 2020.
The latest extension has been granted to allow time for the Supreme Court to review lower court orders that are preventing ED from providing debt relief to millions of federal student loan borrowers.
According to the ED press release, federal student loan payments “will resume 60 days after the Department is permitted to implement the forgiveness program or the litigation is resolved.” If the program has not been implemented and the litigation has not been resolved by June 30, 2023, payments will resume 60 days after that.
During the remaining months of the administrative forbearance:
- Loan payments are suspended on federally-held student loans;
- These loans will accrue no interest;
- And months of forbearance count towards the required payment counts for Public Service Loan Forgiveness and income-driven repayment cancellation.
