Loan Forgiveness and Repayment Restart
The Payment Pause is Ending for Federal Student Loan Borrowers
The pause enacted in response to the COVID-19 pandemic on Federal Student loan repayments, 0% interest rates, and collections on defaulted loans will no longer be extended.
This includes, Federal Direct Subsidized Loans, Federal Direct Unsubsidized Loans, Federal Direct Parent PLUS Loans, the FFEL Subsidized Stafford Loan, the FFEL Unsubsidized Stafford Loan, Federal PLUS Loans and Federal Consolidation Loans.
The US Department of Education (through their servicers) will inform borrowers at least 21 days before payments restart. This notice will also include the payment amount and due date.
How can you make sure you have a successful restart?
Preparing for Repayment
Learn more about how to prepare for repayments to resume.
SAVE Repayment Plan (New)
Looking for a lower monthly payment? See if the new SAVE Repayment Plan is right for you.
Be Cautious and Avoid Scams
With student loan repayment resuming, a new wave of scams has already begun trying to gain access to personal and financial information. The Federal Trade Commission (FTC) and U.S. Department of Education (ED) remind borrowers to be on alert. Report any suspicious activity to the FTC.
- Watch this video is from the U.S. Department of Education on avoiding scams.
- Never give out passwords, if you aren’t sure about who is calling you, hang up and go to studentaid.gov or 1-800-433-3243
- You will never be charged a fee to enroll in different repayment plans
Public Service Loan Forgiveness
If you are employed by a U.S. federal, state, local, or tribal government or not-for-profit organization, you might be eligible for the Public Service Loan Forgiveness Program (PSLF). The PSLF Program forgives the remaining balance on your Direct Loans after you have made 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer.
The following resources can guide you with information on the far-reaching debt relief program announced in August 2022 and repayment restart:
- U.S. Department of Education (ED) Press Release – Key information of final loan pause extension and targeted debt cancellation.
- ED Website Explaining Debt Relief Plan – Basic information with ongoing updates as the process develops.
- White House Fact Sheet on Student Loan Relief – Biden-Harris Administration outline of 3-part plan to assist student borrowers.
- ED Website on Loan Repayment Restart Following COVID Pause – All borrowers with remaining loan balances should review information on the restart of repayment after several years of pause so as to avoid default or other issues.
- Sign up for Updates from ED – Provide your email to sign up for Federal Student Loan Borrower Updates as well as other ED programs.
Monitor information at studentaid.gov to ensure you understand repayment restart and important timelines related to the process.
Federal Student Aid Website: studentaid.gov
Federal Student Aid Information Center: 1-800-4FED-AID (1-800-433-3243)
Please work with the Department or your federal loan servicer to understand loan repayment, debt relief processes, and your role in applying for or receiving student debt relief.