President Biden Extends Suspension of Student Loan Payments

01/26/21 EDIT: See President Biden’s Statement/Release: “At the request of President Biden, the Acting Secretary of Education will extend the pause on federal student loan payments and collections and keep the interest rate at 0%. Too many Americans are struggling to pay for basic necessities and to provide for their families. They should not be forced to choose between paying their student loans and putting food on the table.” 

President Biden issued an executive order today that extended the automatic suspension of student loan payments and waiver of interest. This COVID-19 benefit was set to expire on January 31, 2021, but has now been extended to “at least” September 30, 2021. The Department of Education’s website has been updated to state: “COVID Emergency Relief Flexibilities Extended At Least Through Sept. 30, 2021” (in yellow box below).

This is great news for borrowers who can save some money that they would have otherwise used to repay their student loans. Also, borrowers won’t face a gap in the suspension of student loan payments.

Borrowers can also have those suspension of payments qualify for PSLF (see:

“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.”

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