COVID-19 FAQ’s

NOTE: This is a repost from the Department of Education (https://studentaid.gov/announcements-events/coronavirus):

COVID Emergency Relief Flexibilities Extended At Least Through Sept. 30, 2021

On March 20, 2020, the Secretary of Education directed the office of Federal Student Aid to provide the following relief on ED-held federal student loans:

suspend loan payments
stop collections on defaulted loans
set interest rates to 0% for a period of 60 days

On March 27, 2020, Congress passed, and the president signed into law, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which provides for the above relief measures through Sept. 30, 2020.

On Aug. 8, 2020, President Trump directed the Secretary to continue to suspend loan payments, stop collections, and waive interest on ED-held student loans until Dec. 31, 2020.

On Dec. 4, 2020, the secretary of education extended the emergency relief measures for ED-held student loans until Jan. 31, 2021.

Below, the Department of Education has answered questions about these COVID-19 emergency relief measures and the resulting flexibilities for federal student loans. You will also find answers to questions about preparing for payments to resume.

NOTE: You do not have to pay to get 0% interest or suspended payments for your student loans. Some companies may charge a fee to give you repayment help for federal student loans during the COVID-19 emergency. These companies are not affiliated with or endorsed by the U.S. Department of Education (ED). Learn more about avoiding student loan scams.

0% Loan Interest

Interest is being temporarily set at 0% on federal student loans. Which loans does the 0% rate apply to?

From March 13, 2020, through the end of the COVID emergency relief period, the interest rate is 0% on the following types of federal student loans, but only if they are loans owned by ED:

Defaulted and nondefaulted Direct Loans
Defaulted and nondefaulted FFEL Program loans
Defaulted and nondefaulted Federal Perkins Loans
Defaulted HEAL loans

Please note that some FFEL Program and HEAL loans are owned by commercial lenders, and some Perkins Loans are owned by the institution you attended. These loans are not eligible for this benefit at this time, but you can contact your servicer to ask about what benefits may be available.

To find out if your Direct and FFEL Program loans are owned by ED, visit StudentAid.gov/login. After you log in with your FSA ID, you will be on your StudentAid.gov dashboard. If you click on “view details,” you will be taken to your Aid Summary. If you scroll down on this page, you will see a section called “Loan Breakdown.” In your Loan Breakdown, if you see a servicer name that starts with “DEPT OF ED,” that servicer is for a loan that is owned by ED.

Are private student loans eligible for the 0% interest benefit?

No. ED does not have legal authority over private student loans, and they are not covered by the CARES Act.

I’m currently in school. How does the 0% interest rate impact my loans?

Direct unsubsidized loans normally accrue interest while you’re in school. However, from March 13, 2020, through the end of the COVID emergency relief period, the interest rate on all ED-owned loans has been temporarily lowered to 0%, even while you are in school.

When the COVID emergency relief period ends, regular loan interest rates will apply, and you’ll be able to see your rates if you log in to your account.

How can I take advantage of this 0% interest period if I have Federal Family Education Loan (FFEL) Program and Federal Perkins loans not owned by ED?

While your lender or school can provide these benefits should it choose to do so, you can consolidate your FFEL Program or Federal Perkins loans not owned by ED into a Direct Consolidation Loan, which would be eligible for 0% interest. However, if you consolidate, after the 0% interest rate period ends, the interest rate on your loan may be higher than what you are currently paying. In addition, when you consolidate, any outstanding interest will capitalize, meaning that any outstanding interest is added to your principal balance. Your servicer can provide you with information about how your loan balance, interest rate, and total amount to be paid would change if you consolidated into a Direct Consolidation Loan.

Who can tell me if my loans will have their interest rate temporarily reduced to 0%?

Contact your loan servicer online or by phone to determine if your loans are eligible. Your servicer is the entity to which you make your monthly payment. If you do not know who your servicer is or how to contact them, visit StudentAid.gov/login or call us at 1-800-4-FED-AID (1-800-433-3243; TTY for the deaf or hearing-impaired 1-800-730-8913) for assistance.

If my loans are owned by ED, do I need to do anything for the interest on my loans to be set at 0%?

No, ED has automatically adjusted your account so that interest doesn’t accrue (i.e., accumulate). The account adjustment was effective March 13, 2020.

If I make loan payments during the 0% interest period, how will they be applied?

During the period of 0% interest (beginning March 13, 2020), the full amount of your payments will be applied to principal once all the interest that accrued prior to March 13 and any fees (for defaulted loans) are paid.

Will the interest that accrued on my loans before the suspension of payments began on March 13 be capitalized (added to my loans) at the end of the suspension of payments?

Interest could capitalize at the end of the coronavirus-related suspension of payments, depending on the status of your loans before March 13, 2020. You should contact your loan servicer about your specific situation, but here are a few common examples:

Generally speaking, if you were up to date on your payments before the suspension of payments began, interest accrued prior to March 13, 2020, will not capitalize.
If, before the suspension of payments began, you were in the type of deferment or forbearance in which interest would normally capitalize, then interest accrued prior to March 13, 2020, will capitalize when your original deferment or forbearance ends or when the COVID emergency relief period ends, whichever is later.
If you were in your grace period before the suspension of payments began, any outstanding or unpaid interest on your account will capitalize when you enter repayment.

Loan Payment Suspension (Administrative Forbearance)

I understand that my loans will be placed in administrative forbearance, temporarily suspending my monthly payments. How long will the suspension of payments last?

The suspension of payments is currently scheduled to last from March 13, 2020, through Jan. 31, 2021.

How can I tell if my loan payments have been temporarily suspended?

To find out if your Direct Loan payments have been suspended, log in with your username and password (FSA ID) to view your loan details. Under the Loan Breakdown section of the page, expand your loan details and review your loan status to see whether your loans are shown as being in forbearance.

If you have any questions about your loan status, contact your loan servicer.

Which loans qualify for the COVID-19 suspension of payments?

ED-owned federal student loans may be eligible if they entered repayment prior to the end of the suspension of payments.

The suspension of payments applies to the following types of federal student loans, but only if they are loans owned by ED:

Defaulted and nondefaulted Direct Loans
Defaulted and nondefaulted FFEL Program loans
Defaulted and nondefaulted Federal Perkins Loans
Defaulted HEAL loans

What will happen to my regular auto-debit payments if I do nothing?

Auto-debit payments are suspended during the COVID emergency relief period. Any auto-debit payments processed between March 13, 2020, and the end of the relief period can be refunded to you. Contact your loan servicer to request that your payment be refunded.

If you want to continue making payments, contact your loan servicer to tell them you want to opt out of the administrative forbearance (the suspension of payments), and your auto-debit payments will resume.

You also have the option to remain in the administrative forbearance and make manual (i.e., not auto-debit) payments during the administrative forbearance period. Visit your loan servicer’s website to make a payment, or contact your loan servicer for more information.

Even if you opt out of the administrative forbearance or make payments while it is in effect, 0% interest will be applied to your loans during the suspension of payments.

If I made a payment after the president signed the CARES Act on March 27, 2020, can I receive a refund?

Yes; any payment you made during the suspension of payments (beginning March 13, 2020) can be refunded. Contact your loan servicer to request that your payment be refunded.

How will I know when I will have to start making payments again?

The 0% interest period and suspension of payments are currently scheduled to end on Jan. 31, 2021. Both Federal Student Aid and your servicer will contact you ahead of time to remind you that you will need to start making payments again. Make sure your contact information is up to date in your loan servicer account profile.

What if I want to continue making payments?

Continuing to make payments during the payment suspension could help you pay down your loan balance more quickly because the full amount of a payment will be applied to principal once all interest accrued prior to March 13, 2020, is paid.

You may either leave your loans in the “administrative forbearance” status (meaning the requirement to make payments is suspended) and make payments anyway, or opt out of the administrative forbearance/suspension of payments and continue to make payments.

Things to know about staying in the administrative forbearance and making payments:

If you wish to continue paying your loans during the suspension of payments, or to pay more or less than your regular payment amount, you are free to do so until the end of the suspension of payments.
You will not be billed.
You may not be able to resume auto-debit payment during the suspension of payments.
Contact your loan servicer or visit your servicer’s website to make a payment.

Things to know about opting out of the administrative forbearance and continuing to make payments:

You will be billed.
Auto-debit payments will resume.
Contact your loan servicer or visit your servicer’s website to opt out of the suspension of payments, to make a payment, or to find out how you can continue or start auto-debit payments.
If you opt out of the administrative forbearance and miss a payment, your loan servicer will place you back in forbearance after your loans become 30 days past due.
If you opt out of the suspension of payments and continue making regular payments but then experience a change in income, please contact your loan servicer as soon as possible to discuss options, such as enrolling in an income-driven repayment plan to lower your payments or opting in to the suspension of payments.

What if I want to continue making a partial payment while my loan payments are suspended?

As long as your payments are suspended, you will not be penalized for making a payment that is less than your usual monthly payment. Meanwhile, you still have the option to make a payment on your loan to make progress toward reducing your balance. Contact your loan servicer or visit your servicer’s website to make a payment or to find out how you can continue or start auto-debit payments.

What if my loan is currently in a grace period, and I was supposed to start making payments between March 13, 2020, and Jan. 31, 2021?

Payments on your loans will be suspended (and your loans will remain at the 0% interest rate) for any period after your loans enter repayment between March 13, 2020, and Jan. 31, 2021. For example, if your loans entered repayment on April 15, 2020, payments will be suspended from April 15, 2020, through the end of the COVID emergency relief period, and the interest rate on your loans will be 0% during this period.

Note that entering repayment is a capitalization event, which means any interest that accrued on your loans prior to March 13 will be capitalized (added to the principal balance) at the end of your grace period. You can make payments during your grace period to avoid capitalization of some or all of the outstanding interest that accrued on your loans prior to March 13, 2020.

Consider  income-based repayment options: An income-driven repayment  (IDR)  plan can help ensure your monthly loan payment amount is affordable when the suspension of payments ends.

Visit Loan Simulator: Compare your available loan repayment options through  Loan Simulator.  You can also contact your loan servicer to ensure you’re set up for the best repayment plan based on your financial situation. Unless you’ve requested a different repayment plan, your loan servicer will place your student loans in the standard repayment plan when the payment suspension ends.

Will suspended payments count toward Public Service Loan Forgiveness (PSLF) or Temporary Expanded PSLF (TEPSLF)?

If you have a Direct Loan and work full-time for a qualifying employer during the suspension, then you will receive credit toward PSLF or TEPSLF for the period of suspension as though you made on-time monthly payments in the correct amount while on a qualifying repayment plan.

Note: In-grace, in-school, and certain deferment, forbearance, and bankruptcy statuses are not eligible for credit toward PSLF.

If I consolidate into a Direct Consolidation Loan during the suspension of payments, will my new consolidation loan automatically be placed in administrative forbearance?

Yes. However, consolidation can sometimes result in a higher interest rate because the interest rate on a consolidation loan is the weighted average of the loans you consolidated, rounded up to the nearest one-eighth of one percentage point. Therefore, you may find that your rate is higher than what you paid previously once the 0% interest rate period ends.

In addition, when you consolidate, any outstanding interest will capitalize, meaning that any outstanding interest will be added to your principal balance. If you consolidate, you will also lose credit for any qualifying income-driven repayment or Public Service Loan Forgiveness payments you may have previously made. Your servicer can provide you with information about how your loan balance, interest rate, and total amount to be paid would change if you consolidated into a Direct Consolidation Loan.

What if I’m in a cancer treatment deferment? Will my loans be put into administrative forbearance and then back into deferment after the forbearance ends?

Yes, your loans will be placed into administrative forbearance. If your cancer deferment would have ended after Jan. 31, 2021, your loans will be placed back into that deferment automatically on Feb. 1, 2021.

If your cancer deferment recertification date fell between March 13, 2020, and July 1, 2020, your servicer extended the date to Feb. 1, 2021. If your cancer treatment deferment recertification date falls later in the administrative forbearance period (i.e., between Aug. 2, 2020, and Jan. 31, 2021), your loan servicer will extend the date for six months.

If you would like to recertify during the administrative forbearance, contact your loan servicer to request to do so.

Preparing for Repayment to Resume

NEW: When the payment suspension ends Jan. 31, 2021, what’s the earliest my payment could be due?

Once the payment suspension ends Jan. 31, you’ll receive your billing statement or other notice.

No payment will be due before Feb. 22, 2021. Visit this page regularly; we will post additional information as it becomes available. Updates will include any changes made by a new administration.

The payment suspension is temporary. How can I prepare for monthly payments to resume?

Check out Loan Simulator to find a repayment plan that meets your needs and goals or to decide whether to consolidate. Loan Simulator can help you estimate payments under a variety of repayment plans, including income-driven repayment (IDR) plans. An IDR plan can make your payments more affordable, depending on your income and family size. Loan Simulator also shows you the impact of deferment or forbearance on your overall loan balance.

After you apply for an IDR plan, your federal loan servicer will notify you about your eligibility and, if you qualify, your payment amount.

Apply for an IDR plan now.

Will my payment amount change after the payment suspension ends?

It depends. If you’re on a traditional repayment plan, such as a standard, graduated, or extended plan, then your loan servicer will recalculate your payment amount using your current balance of principal and interest and the remaining repayment period that you have on your loans (excluding periods of deferment or forbearance) when the suspension of payments ends.

Whether your payment goes up or down on these plans when the suspension period ends depends on whether you paid down any interest or principal during the suspension period and whether any interest capitalizes when the suspension period ends.

If you’re in an income-driven repayment plan, your payment amount will return to what it was prior to your payments being suspended.

Will the payment suspension cause me to take longer to pay off my loans?

Traditional Repayment Plans

If you’re on a traditional repayment plan, such as a standard, graduated, or extended repayment plan, you will be in a repayment status for the same total number of months as you would have been without the suspension period. This means that you may pay off your loans at a later date than originally scheduled, since the suspension period extends the period of time you have to pay off your loans.

For example, if you entered repayment on a 10-year standard repayment plan on Jan. 1, 2018, you would have 10 years from that date to repay your loan—meaning that your loan must be paid in full by Dec. 31, 2028. The suspension period is excluded from the 10-year period for the repayment plan, meaning that, if the period were to last one year, then the loan would be required to be repaid in full by Dec. 31, 2029.

Whether you pay your loan off earlier than the required date is up to you. Borrowers may always accelerate repayment.

Income-Driven Repayment Plans

Income-driven repayment plans operate in a fundamentally different way, both in general and specifically during this suspension period. The repayment periods for these plans are not the point in time during which you must have repaid your loan in full; instead, they are the point in time at which, if you have any remaining balance, that balance will be forgiven. Normally, a forbearance would not count toward the forgiveness; however, during this suspension period, it does. Therefore, the suspension period may make it more likely that your balance will be forgiven than it might have otherwise been.

However, whether this is the case for you in particular depends on your income and family size after the suspension period ends. Income-driven plans recalculate your repayment amount each year to account for changes to your income and family size, and changes to your payment amount will affect how quickly you repay your loan and whether you repay your loan in full before the end of the forgiveness period.

Note: This information provides general examples and may not apply to your specific situation. The important thing to remember is that your loan servicer is your source for official, up-to-date information about your loan and repayment status. Contact your loan servicer if you have questions or need help.

Will my auto-debit payments resume automatically?

Auto-debit payments will resume automatically on your first due date when payments begin again.

If you have questions about your auto-debit or need to make changes to your auto-debit banking information on file, contact your loan servicer (for Direct Loans or Perkins Loans) or your private collection agency (for defaulted loans).

My monthly student loan payment will be too high. What can I do to lower it?

You may be eligible to lower your monthly student loan payment by enrolling in an income-driven repayment (IDR) plan. Under an IDR plan, payments may be as low as $0 per month. Apply for an IDR plan and select the box to be placed on the repayment plan that will provide you with the lowest monthly payment.

Income-Driven Repayment

If I’m currently on an income-driven repayment (IDR) plan, will my suspended payments count toward IDR forgiveness?

Yes.

I’m on an IDR plan. When do I need to complete my annual recertification?

You will not have to recertify your income before Jan. 31, 2021, regardless of whether your recertification date would have happened prior to Jan. 31, 2021. As part of the payment suspension, your recertification date has been pushed out from your original recertification date. You will be notified of your new recertification date before it is time to recertify. If you have moved, changed phone numbers, or have a new email address, you should contact your loan servicer to provide updated contact information.

If I enroll in an IDR plan during the payment suspension, will my payments automatically remain suspended? Will those months count toward IDR forgiveness?

Yes, your payments will remain suspended, and yes, the months will count toward IDR forgiveness.

I’m currently on an IDR plan. I’m unemployed because of the coronavirus outbreak and don’t know when my income will return to the same level. What can I do?

You are automatically being placed in an administrative forbearance that allows you to stop making your payments from March 13, 2020, through the end of the COVID emergency relief period.

If you are on an IDR plan and your income has changed significantly, you can update your information and get a new payment amount based on your current income. To do so, visit StudentAid.gov/idr, click on “Apply Now,” and then start the application by clicking on the button next to “Recalculate my monthly payment.” After the suspension of payments ends, your monthly payments will resume at the new amount.

If you would like to enroll in an IDR plan for the first time, visit StudentAid.gov/idr, click on “Apply Now,” and then start the application.

I’m already on an IDR plan. Can I apply for lower payments?

If you’re on an IDR plan and your income has changed significantly, you can update your information and get a new payment amount based on your current income. To do so, visit StudentAid.gov/idr, click on “Apply Now,” and then start the application by clicking the button beside “Recalculate my monthly payment.” After the suspension of payments ends, your monthly payments will resume at the new amount.

FAFSA^® Process

Will my FAFSA^® application be processed if my school is closed?

ED’s Central Processing System will process your FAFSA information and will send it to each school you list on your FAFSA form. If your school is completely closed, check your school’s website for resources and contact information. Your school’s verified social media accounts also may be a good source for the latest information about how to contact your school during this time.

Can I update my FAFSA^® information if I (or my parent) lost a job because of closings due to the coronavirus outbreak?

If your or your family’s financial situation has changed significantly from what is reflected on your federal income tax return (for example, if you’ve lost a job or otherwise experienced a drop in income), you may be eligible to have your financial aid adjusted. Complete the FAFSA questions as instructed on the application (including the transfer of tax return and income information), submit your FAFSA form, then contact the school you plan to attend to discuss how your current financial situation has changed. Note that the school’s decision is final and cannot be appealed to ED.

I haven’t filled out a FAFSA^® form for the 2020–21 year because I didn’t think I needed financial aid. Now I’m unemployed because my company closed due to the coronavirus outbreak. Is it too late to fill out a FAFSA form?

No. The 2020–21 FAFSA form is available at fafsa.gov. It’s possible that you’ve missed deadlines for aid from your state or school, but the federal FAFSA deadline for 2020–21 is June 30, 2021.

Financial Aid Availability

What should I do if my campus is temporarily closed?

Please contact your school. Many schools are making arrangements, such as take-home assignments or online classes, so students can complete the term. The CARES Act ensures students will be able to keep the federal student aid they have already received.

Under the CARES Act, if your school participates in the federal student aid programs, you may be eligible to receive emergency grants for expenses related to the disruption of campus operations due to coronavirus. Your financial aid office is your best source of information about grant funds at your school.

Check your school’s website for resources and contacts to learn how your school is supporting students during the coronavirus emergency.

If my campus is closed or offering only online instruction, will I still get paid for the hours I am unable to work for my Federal Work-Study job?

If you started your job before coronavirus-related disruptions occurred, but you’re now unable to work your scheduled hours because of coronavirus-related disruptions (such as school or employer closures or student quarantines), your school may pay you for any scheduled hours or allow you to work by another means—for example, completing work online or remotely, depending on the job. Contact your school for more information.

If you had not started your Federal Work-Study job before coronavirus-related disruptions, you may not be paid Federal Work-Study wages for hours you cannot work. Check with your financial aid office to see if other sources of funding are available.

How can I get a work-study job if I’m not on campus?

Off-campus employment may be available to you. Contact your school’s financial aid office to inquire about work-study job opportunities and accommodations being made due to coronavirus.

Can I get more financial aid if I or my parents can no longer work or have taken pay cuts due to coronavirus?

Talk to the financial aid office at your school. They have flexibility to work with you to adjust your financial aid if your or your parents’ income changes.

Someone in my family has the coronavirus, so our whole family has self-quarantined, and I can’t attend classes. How can I keep up in school, so I don’t fail classes and lose my financial aid?

We encourage you to contact your school’s financial aid office, as well as your academic advisor/coach or program coordinator, for additional guidance about your financial aid situation. Your school can tell you your options for continuing in your program of study. Additionally, if you need to take a leave of absence as a result of the coronavirus outbreak, you should speak with your school’s financial aid office.

Many schools have provided detailed coronavirus-related decisions and guidance for students. We encourage you to check your school’s website and verified social media accounts for resources and the latest information about this rapidly evolving situation.

If my school moves classes online, am I going to get less financial aid?

If your school has moved classes to an online format, you must regularly continue to participate in and complete the course work to remain eligible for financial aid. If you have questions about the online format, contact your school.

How do I contact my school’s financial aid office if the school is closed?

Check your school’s website for resources and contact information. Your school’s verified social media accounts also may be a good source for the latest information about how to contact your school during this time. While many schools have transitioned face-to-face courses to online instruction, most remain open and available to assist their students with questions.

I am a college student who needs additional financial assistance due to the disruption of operations on my campus. Is there money available to help me?

Under the CARES Act, if your school participates in the federal student aid programs, you may be eligible to receive emergency grants for expenses related to the disruption of campus operations due to coronavirus. The grants can help cover eligible expenses such as food, housing, course materials, technology, health care, and child care. Each school decides the criteria for qualified students to receive a grant, the grant amount, and how and when the grant will be disbursed (paid out) to students. Your financial aid office is your best source of information about grant funds at your school.

I wasn’t able to take classes this semester but plan to return in the spring. Will I be able to receive federal student aid when I return?

Make sure you’ve filled out a 2020–21 FAFSA form; and contact your school’s financial aid office for information about eligibility for federal student aid.

I’m a current college student and considering deferring/delaying upcoming classes due to COVID-19 concerns. How will that impact me?

If you stop attending school or drop below half-time enrollment, payments on your student loans will begin after your six-month grace period. If you reenroll in school at least half-time before the end of your grace period, you will still receive the full six-month grace period when you stop attending.

Once in repayment, you will automatically be placed into the suspension period explained on this page, but after that periods ends, you may be eligible to lower your monthly student loan payment by enrolling in an income-driven repayment (IDR) plan. Under an IDR plan, payments may be as low as $0 per month.

Another important thing to keep in mind is that, if you received aid for a period of enrollment that you later decide to defer or delay, you may be required to pay back all or a portion of your aid. In addition, every school has a different policy about readmission, so you should speak with your school about reentering your degree program.

Reminder: If you plan to go to school in 2021‒22, apply for financial aid for that year by filling out the 2021‒22 FAFSA form. Don’t forget to apply before your state and college deadlines.

I’m considering taking a gap year due to COVID-19 concerns. How will that impact my financial aid?

If you accepted an offer of admission and submitted a deposit but decided to defer your first year of college, make sure your school has approved your decision. Financial aid offers are not guaranteed to be the same amount each year, and deposits are not always refundable.

Reminder: If you plan to go to school in 2021‒22, apply for financial aid for that year by filling out the 2021‒22 FAFSA form. Don’t forget to apply before your state and college deadlines.

Loans in Default

Don’t get discouraged if you’re in default on your federal student loans.

Find out how to get out of default and how loan rehabilitation can benefit you. If you choose to apply for loan rehabilitation, find out what documentation is required to apply for loan rehabilitation.

If I’m trying to rehabilitate my defaulted student loan, will my suspended payments count toward my rehabilitation?

Yes. If you’re already in a rehabilitation agreement, all of your suspended payments will count.

If you enter a new rehabilitation agreement during the payment suspension, suspended payments that would have been made from the beginning of your agreement until the end of the payment suspension will count. For example, if you entered a new rehabilitation agreement on Sept. 5, 2020, and your payment due date was Sept. 15, suspended payments will count toward your successful rehabilitation for September, October, November, December, and January. You will not get credit for suspended payments for March through August, the months before you entered your new rehabilitation agreement.

If you haven’t made, or been given credit for, the nine required payments by the end of the payment suspension, you will have to begin making payments after the payment suspension ends.

If I make loan payments during the 0% interest period, how will they be applied?

On March 25, 2020, ED announced that my federal tax refund would not be withheld to repay my defaulted federal student loan debt. My refund has already been taken. Will I get it back?

Yes, if your loans are owned by ED, but only if your federal tax refund was in the process of being withheld—on or after March 13, 2020, and before the end of the COVID emergency relief period—for the repayment of a defaulted federal student loan.

Your federal tax refund will not be returned to you if the process to withhold your refund was completed before March 13, 2020.

If you have questions about whether your federal tax refund was withheld, call ED’s Default Resolution Group at 1-800-621-3115 (TTY for the deaf or hearing-impaired 1-877-825-9923).

On March 25, 2020, ED announced that a portion of my Social Security payment, including disability benefits, would not be withheld to repay my defaulted federal student loan debt. My Social Security payment has already been taken. Will I get it back?

Yes, if your loans are owned by ED. The portion of your Social Security payment that was taken will be returned to you if your payment was in the process of being withheld—on or after March 13, 2020, and before the end of the COVID emergency relief period—for the repayment of a defaulted federal student loan.

The portion of your Social Security payment that was withheld will not be returned to you if the process to withhold it was completed before March 13, 2020.

If you have questions about whether your Social Security payment was withheld, call ED’s Default Resolution Group at 1-800-621-3115 (TTY for the deaf or hearing-impaired 1-877-825-9923).

Will Treasury offset, such as withholding of tax refunds and Social Security benefits, resume when the suspension of collection activity authorized under the CARES Act ends?

If you’re in default and entered into a voluntary repayment agreement, your loans won’t be subject to offset provided you continue to make payments when the CARES Act benefits end. Borrowers in default who have not entered into a voluntary repayment agreement will have the opportunity to do so before ED initiates withholding of your Treasury benefits (e.g. tax refunds, Social Security payments, etc.)

On March 25, 2020, ED announced that my wages would not be garnished, but money is still being taken from my paycheck. What should I do?

ED has instructed employers to stop wage garnishment. If ED receives funds from a garnishment between March 13, 2020, and the end of the COVID emergency relief period, we will refund your garnished wages and will contact your employer again.

If your wages are still being garnished, please reach out to your employer’s human resources department.

On March 25, 2020, ED announced that Department-contracted private collection agencies stopped making collection calls and sending letters or billing statements. What should I do if I want to continue the payment arrangements I started before ED’s announcement?

You can continue your payment arrangement related to your defaulted federal student loan. Private collection agencies have been instructed to not make collection calls until the end of the COVID emergency relief period. However, private collection agencies are available to assist you if you reach out to them during this period. To be connected to your private collection agency to continue your current payment arrangement, email ED’s Default Resolution Group or call them at 1-800-621-3115 (TTY for the deaf or hearing-impaired 1-877-825-9923).

On March 25, 2020, ED announced that Department-contracted private collection agencies stopped making collection calls and sending letters or billing statements. What should I do if I want to consolidate my defaulted federal student loans or start a loan rehabilitation arrangement now?

To consolidate, or to start a loan rehabilitation arrangement related to your defaulted federal student loans, email ED’s Default Resolution Group, or call them at 1-800-621-3115 (TTY for the deaf or hearing-impaired 1-877-825-9923) for assistance.

Learn more about ways to get out of default.

Will my defaulted loan accrue interest?

Defaulted loans owned by ED will not accrue interest from March 13, 2020, through the end of the COVID emergency relief period. That includes Direct Loans and FFEL Program loans owned by ED. Read the Q&As above to learn more about the 0% interest period.

Do any of the federal student loan relief measures apply to my defaulted HEAL loans?

This Q&A contains general statements of policy under the Administrative Procedure Act issued to advise the public prospectively of the manner in which the U.S. Department of Education (ED) and Federal Student Aid (FSA) propose to exercise their discretion as a result of and in response to the lawfully and duly declared COVID-19 pandemic national emergency. ED and FSA do not intend for this Q&A to create legally binding standards affirmatively determining any member of the public’s legal rights and obligations for which noncompliance may form an independent basis for action.