For much of the last two years, most federal student loans have been on pause. No payments have been due, no interest has been accruing, and collections activities on defaulted federal student loans have been halted.
The original student loan payment pause was established through the CARES Act – a massive stimulus bill passed by Congress in March of 2020 in response to the rapidly deteriorating economic and public health situation associated with the Covid-19 pandemic. Lawmakers originally envisioned a six-month pause on student loan payments, but that relief was subsequently extended and expanded by former President Trump and then President Biden using executive action.
Biden’s most recent extension of the student loan payment moratorium is set to end on January 31, 2022 — 60 days from now. Here’s what borrowers should know.