Biden Administration Student Loan Debt Relief Plan (2022)

Biden Administration Joe Biden • Kamala Harris

Administration: News • Joe Biden's Cabinet • Confirmation process for Cabinet nominees • Confirmation votes by senator • Executive orders and actions • Key legislation • Vetoes • White House staff • Ambassadors • Special envoys • Weekly addresses • Multistate lawsuits

Transition: White House senior staff • Agency review teams • Certification of electoral votes • 2020 presidential election

On June 30, 2023, the United States Supreme Court struck down the Biden administration's student loan debt relief plan. In a 6-3 decision, the court ruled in Biden v. Nebraska that the 2003 HEROES Act did not provide the U.S. Department of Education with the authority to cancel parts of student loans on a large scale.^[1] Click here to read more about the lawsuit, and click here to read more about the 2003 HEROES Act.

After the Supreme Court struck down Biden's 2022 student debt cancellation plan, the Biden administration announced several other student loan debt cancellation plans with more limited scopes. Click here to read more.

President Joe Biden (D) announced the three-part student loan debt relief plan, which aimed to offer "targeted debt relief as part of a comprehensive effort to address the burden of growing college costs and make the student loan system more manageable for working families," on August 25, 2022. The administration intended that the plan take effect before borrowers were required to resume payments on their student loans, which were first paused in response to the coronavirus in March 2020 by the Trump administration.^[2] On June 3, 2023, Biden signed into law the Fiscal Responsibility Act of 2023, which raised the debt ceiling and contained a provision ending the repayment pause 60 days after June 30, 2023.^[3] On June 12, 2023, a representative for the U.S. Department of Education clarified the timeline for the resumption of student loan repayments, stating, "Student loan interest will resume starting on September 1, 2023, and payments will be due starting in October. ... We will notify borrowers well before payments restart."^[4]

Noteworthy elements of the plan included:^[2]

• Cancellation of up to $20,000 of student loan debt for Pell Grant recipients and $10,000 for other borrowers making under $125,000
• A final student loan repayment pause through December 31, 2022^[5]
• A reduction in monthly payment amounts and the coverage of unpaid monthly interest when a borrower makes monthly payments
• Expansion of employment types that qualify for the Public Service Loan Forgiveness (PSLF) program
• Increased oversight of higher education programs with high debt levels
• Only federal student loans held by the Department of Education would be eligible for debt cancellation.^[6]

On June 7, 2023, Biden vetoed a joint resolution of disapproval passed by Congress that sought to void the student loan plan. Click here to read more about the resolution.

On this page you will find:

• Aftermath of the 2023 Supreme Court decision
• The text of Biden's announced plan
• Legal background of the plan
• Lawsuits filed challenging the plan
• Congressional actions related to the plan
• A timeline of federal student debt relief actions during the coronavirus pandemic

Aftermath

Following the Supreme Court's ruling, Biden announced he would seek to enact student debt cancellation under the authority of the Higher Education Act, and that borrowers would not risk default or harmed credit if they missed payments in the 12 months following the ruling.^[7]

Biden announced the Saving on a Valuable Education (SAVE) in August 2023, which sought to reduce undergraduate loan payments, adjust loan payments to discretionary income, reduce interest, and provide early debt cancellation for low-balance borrowers.^[8] In April 2024, Biden said he would cancel up to $20,000 of unpaid interest on loans, automatically cancel debt for individuals eligible for cancellation under existing policy, cancel debt for individuals who entered repayment 20 years previously, individuals who were enrolled in low-financial-value programs, and for individuals experience financial hardship.^[9]

In April 2024, Missouri Attorney General Andrew Bailey (R) filed a lawsuit against Biden's SAVE plan.^[10]

Text of the plan

The scroll box and collapsible sections below provide the text of Biden's Student Loan Debt Relief Plan announcement.^[2] Further information on the plan can also be found on the Federal Student Aid explainer page.

• "Provide Targeted Debt Relief, Fulfilling the President’s Campaign Commitment"

  “

  To address the financial harms of the pandemic for low- and middle-income borrowers and avoid defaults as loan repayment restarts next year, the Department of Education will provide up to $20,000 in loan relief to borrowers with loans held by the Department of Education whose individual income is less than $125,000 ($250,000 for married couples) and who received a Pell Grant. Nearly every Pell Grant recipient came from a family that made less than $60,000 a year, and Pell Grant recipients typically experience more challenges repaying their debt than other borrowers. Borrowers who meet those income standards but did not receive a Pell Grant in college can receive up to $10,000 in loan relief. The Pell Grant program is one of America’s most effective financial aid programs—but its value has been eroded over time. Pell Grant recipients are more than 60% of the borrower population. The Department of Education estimates that roughly 27 million borrowers will be eligible to receive up to $20,000 in relief, helping these borrowers meet their economic potential and avoid economic harm from the COVID-19 pandemic. Current students with loans are eligible for this debt relief. Borrowers who are dependent students will be eligible for relief based on parental income, rather than their own income. If all borrowers claim the relief they are entitled to, these actions will: Provide relief to up to 43 million borrowers, including cancelling the full remaining balance for roughly 20 million borrowers. Target relief dollars to low- and middle-income borrowers. The Department of Education estimates that, among borrowers who are no longer in school, nearly 90% of relief dollars will go to those earning less than $75,000 a year. No individual making more than $125,000 or household making more than $250,000 – the top 5% of incomes in the United States – will receive relief. Help borrowers of all ages. The Department of Education estimates that, among borrowers who are eligible for relief, 21% are 25 years and under and 44% are ages 26-39. More than a third are borrowers age 40 and up, including 5% of borrowers who are senior citizens. Advance racial equity. By targeting relief to borrowers with the highest economic need, the Administration’s actions are likely to help narrow the racial wealth gap. Black students are more likely to have to borrow for school and more likely to take out larger loans. Black borrowers are twice as likely to have received Pell Grants compared to their white peers. Other borrowers of color are also more likely than their peers to receive Pell Grants. That is why an Urban Institute study found that debt forgiveness programs targeting those who received Pell Grants while in college will advance racial equity. The Department of Education will work quickly and efficiently to set up a simple application process for borrowers to claim relief. The application will be available no later than when the pause on federal student loan repayments terminates at the end of the year. Nearly 8 million borrowers may be eligible to receive relief automatically because their relevant income data is already available to the Department. Thanks to the American Rescue Plan, this debt relief will not be treated as taxable income for the federal income tax purposes. To help ensure a smooth transition back to repayment, the Department of Education is extending the student loan pause a final time through December 31, 2022. No one with federally-held loans has had to pay a single dollar in loan payments since President Biden took office.[11]

  ”

• "Make the Student Loan System More Manageable for Current and Future Borrowers"

  “

  Fixing Existing Loan Repayment to Lower Monthly Payments The Administration is reforming student loan repayment plans so both current and future low- and middle-income borrowers will have smaller and more manageable monthly payments. The Department of Education has the authority to create income-driven repayment plans, which cap what borrowers pay each month based on a percentage of their discretionary income. Most of these plans cancel a borrower’s remaining debt once they make 20 years of monthly payments. But the existing versions of these plans are too complex and too limited. As a result, millions of borrowers who might benefit from them do not sign up, and the millions who do sign up are still often left with unmanageable monthly payments. To address these concerns and follow through on Congress’ original vision for income-driven repayment, the Department of Education is proposing a rule to do the following: For undergraduate loans, cut in half the amount that borrowers have to pay each month from 10% to 5% of discretionary income. Raise the amount of income that is considered non-discretionary income and therefore is protected from repayment, guaranteeing that no borrower earning under 225% of the federal poverty level—about the annual equivalent of a $15 minimum wage for a single borrower—will have to make a monthly payment. Forgive loan balances after 10 years of payments, instead of 20 years, for borrowers with original loan balances of $12,000 or less. The Department of Education estimates that this reform will allow nearly all community college borrowers to be debt-free within 10 years. Cover the borrower’s unpaid monthly interest, so that unlike other existing income-driven repayment plans, no borrower’s loan balance will grow as long as they make their monthly payments—even when that monthly payment is $0 because their income is low. These reforms would simplify loan repayment and deliver significant savings to low- and middle-income borrowers. For example: A typical single construction worker (making $38,000 a year) with a construction management credential would pay only $31 a month, compared to the $147 they pay now under the most recent income-driven repayment plan, for annual savings of nearly $1,400. A typical single public school teacher with an undergraduate degree (making $44,000 a year) would pay only $56 a month on their loans, compared to the $197 they pay now under the most recent income-driven repayment plan, for annual savings of nearly $1,700. A typical nurse (making $77,000 a year) who is married with two kids would pay only $61 a month on their undergraduate loans, compared to the $295 they pay now under the most recent income-driven repayment plan, for annual savings of more than $2,800. For each of these borrowers, their balances would not grow as long as they are making their monthly payments, and their remaining debt would be forgiven after they make the required number of qualifying payments. Further, the Department of Education will make it easier for borrowers who enroll in this new plan to stay enrolled. Starting in the summer of 2023, borrowers will be able to allow the Department of Education to automatically pull their income information year after year, avoiding the hassle of needing to recertify their income annually. Ensuring Public Servants Receive Credit Toward Loan Forgiveness Borrowers working in public service are entitled to earn credit toward debt relief under the Public Service Loan Forgiveness (PSLF) program. But because of complex eligibility restrictions, historic implementation failures, and poor counseling given to borrowers, many borrowers have not received the credit they deserve for their public service. The Department of Education has announced time-limited changes to PSLF that provide an easier path to forgiveness of all outstanding debt for eligible federal student loan borrowers who have served at a non-profit, in the military, or in federal, state, Tribal, or local government for at least 10 years, including non-consecutively. Those who have served less than 10 years may now more easily get credit for their service to date toward eventual forgiveness. These changes allow eligible borrowers to gain additional credit toward forgiveness, even if they had been told previously that they had the wrong loan type. The Department of Education also has proposed regulatory changes to ensure more effective implementation of the PSLF program moving forward. Specifically, the Department of Education has proposed allowing more payments to qualify for PSLF including partial, lump sum, and late payments, and allowing certain kinds of deferments and forbearances, such as those for Peace Corps and AmeriCorps service, National Guard duty, and military service, to count toward PSLF. The Department of Education also proposed to ensure the rules work better for non-tenured instructors whose colleges need to calculate their full-time employment. To ensure borrowers are aware of the temporary changes, the White House has launched four PSLF Days of Action dedicated to borrowers in specific sectors: government employees, educators, healthcare workers and first responders, and non-profit employees. You can find out other information about the temporary changes on PSLF.gov. You must apply to PSLF before the temporary changes end on October 31, 2022.[11]

  ”

• "Protecting Borrowers and Taxpayers from Steep Increases in College Costs"

  “

  While providing this relief to low- and middle-income borrowers, the President is focused on keeping college costs under control. Under this Administration, students have had more money in their pockets to pay for college. The President signed the largest increase to the maximum Pell Grant in over a decade and provided nearly $40 billion to colleges and universities through the American Rescue Plan, much of which was used for emergency student financial aid, allowing students to breathe a little easier. Additionally, the Department of Education has already taken significant steps to strengthen accountability, so that students are not left with mountains of debt with little payoff. The agency has re-established the enforcement unit in the Office of Federal Student Aid and it is holding accreditors’ feet to the fire. In fact, the Department just withdrew authorization for the accreditor that oversaw schools responsible for some of the worst for-profit scandals. The agency will also propose a rule to hold career programs accountable for leaving their graduates with mountains of debt they cannot repay, a rule the previous Administration repealed. Building off of these efforts, the Department of Education is announcing new actions to hold accountable colleges that have contributed to the student debt crisis. These include publishing an annual watch list of the programs with the worst debt levels in the country, so that students registering for the next academic year can steer clear of programs with poor outcomes. They also include requesting institutional improvement plans from the worst actors that outline how the colleges with the most concerning debt outcomes intend to bring down debt levels.[11]

  ”

Legal background

In a memorandum released on August 23, 2022, General Counsel Lisa Brown outlined an argument for the Secretary of Education's legal authority to cancel and alter student loan debt requirements, which was overturned by the United States Supreme Court on June 30, 2023. Click here to read more about the case.

Brown said the Higher Education Relief Opportunities for Students (“HEROES”) Act of 2003 provides the authority to "'waive or modify any statutory or regulatory provision applicable to the student financial assistance programs' if the Secretary 'deems' such waivers or modifications 'necessary to ensure' at least one of several enumerated purposes, including that borrowers are 'not placed in a worse position financially' because of a national emergency." Many of the student debt repayment pauses of 2020, 2021, and 2022 also used the statutory authority provided by the HEROES Act.

In the memo, Brown argued that "several provisions of the HEROES Act indicate that Congress intended the Act to confer broad authority" and that "this authority could be used to effectuate a program of categorical debt cancellation directed at addressing the financial harms caused by the COVID-19 pandemic." This memo also requested that a previous memorandum issued during the Trump administration be rescinded.^[12]

The January 2021 memorandum addressed the same legal question, whether the HEROES Act could allow the secretary of education to cancel student loan debt for a mass category of borrowers, but said the secretary could not pursue such debt cancellation. The January 2021 memo argued, "Congress never intended the HEROES Act as authority for mass cancellation, compromise, discharge, or forgiveness of student loan principal balances, and/or to materially modify repayment amounts or terms."^[13]

Lawsuits

This section was last updated on August 14, 2023. See something we missed? Email us.

Nebraska v. Biden: Supreme Court overturns student loan debt relief plan

On September 29, 2022, six Republican state attorneys general, led by Nebraska Attorney General Doug Peterson (R), filed a lawsuit challenging the plan before the United States District Court for the Eastern District of Missouri. Along with Nebraska, Missouri, Arkansas, Iowa, Kansas, and South Carolina joined in the lawsuit. The plaintiffs said, "The Biden Administration’s Mass Debt Cancellation is yet another example in a long line of unlawful regulatory actions. No statute permits President Biden to unilaterally relieve millions of individuals from their obligation to pay loans they voluntarily assumed."^[14]

On October 20, Judge Henry Autrey of the United States District Court for the Eastern District of Missouri dismissed the case.^[15] The plaintiffs appealed the decision. On October 21, the United States Court of Appeals for the Eighth Circuit issued a stay temporarily blocking the program while the lawsuit was considered.^[16] The court issued a nationwide injunction on November 14.^[17] The Biden administration asked the Supreme Court to vacate the injunction on November 18.^[18]

The Supreme Court announced on December 1 that it would take up the case.^[19] This case was consolidated with Brown v. U.S. Department of Education on January 4, 2023.^[20] The court ultimately issued separate rulings in this case and Brown v. U.S. Department of Education.

On June 30, 2023, the court ruled against the Biden administration, overturning the student loan debt relief plan. In a 6-3 majority opinion, Chief Justice John Roberts wrote, "Today, we have concluded that an instrumentality created by Missouri, governed by Missouri, and answerable to Missouri is indeed part of Missouri; that the words 'waive or modify' do not mean 'completely rewrite'; and that our precedent—old and new—requires that Congress speak clearly before a Department Secretary can unilaterally alter large sections of the American economy." Justices Clarence Thomas, Samuel Alito, Neil Gorsuch, Brett Kavanaugh, and Amy Coney Barrett joined in the majority opinion.^[21]

In her dissent, Justice Elena Kagan wrote, "The majority’s opinion begins by distorting standing doctrine to create a case fit for judicial resolution. But there is no such case here, by any ordinary measure. [...] The opinion ends by applying the Court’s made-up major-questions doctrine to jettison the Secretary’s loan forgiveness plan." Justices Sonia Sotomayor and Ketanji Brown Jackson joined in Kagan's dissent.^[21]

Badeaux v. Biden

On October 27, Tommy Badeaux, a Louisiana lawyer, filed a lawsuit challenging the plan before the United States District Court for the Eastern District of Louisiana. The plaintiff said, "Tommy seeks recourse in this Court to vindicate the Constitution and the Administrative Procedure Act and to stop an arbitrary and capricious wealth transfer that did not follow the rules."^[22] The case was stayed on January 20, 2023, pending a Supreme Court ruling in similar cases.^[23] On August 11, 2023, the case was voluntarily dismissed by all plaintiffs.

Brown v. U.S. Department of Education

On October 10, 2022, the Job Creators Network Foundation Legal Action Fund filed a lawsuit on behalf of two plaintiffs challenging the plan before the United States District Court for the Northern District of Texas. The plaintiffs said, "Without relief from this Court, Plaintiffs will be forever denied their procedural rights to protect their concrete interests. Because the Debt Forgiveness Program was adopted in violation of the APA [Administrative Procedure Act], the Program must be vacated and set aside and the Department should be enjoined from implementing or enforcing the Program in any manner."^[24] On November 8, Judge Mark Pittman ruled that the program should be vacated.^[25] The Biden administration filed an appeal.^[26]

The Supreme Court took up the case on December 12, and consolidated it with Nebraska v. Biden on January 4, 2023.^[27] The court ultimately issued separate rulings in this case and Nebraska v. Biden.

On June 30, 2023, in a unanimous opinion written by Justice Samuel Alito, the Supreme Court found that the plaintiffs did not have standing.^[28]

Garrison v. U.S. Department of Education

On September 27, 2022, the Pacific Legal Foundation filed a lawsuit on behalf of Frank Garrison challenging the plan before the United States District Court for the Southern District of Indiana. The plaintiffs said, "Nothing about loan cancellation is lawful or appropriate. In an end-run around Congress, the administration threatens to enact a profound and transformational policy that will have untold economic impacts."^[29] On October 21, 2022, Judge Richard Young of the United States District Court for the Southern District of Indiana dismissed the case.^[30] The plaintiffs appealed the decision to the United States Court of Appeals for the Seventh Circuit, which rejected their request for an emergency injunction on the program.^[31] The plaintiffs then appealed the decision to the United States Supreme Court. On November 4, 2022, Justice Amy Coney Barrett rejected the request for an emergency injunction.^[32] The case was dismissed on July 6, 2023, following the Supreme Court's ruling in Nebraska v. Biden.^[31]

Legislative action

The section below provides an overview of noteworthy federal legislative action in response to the Biden Administration Student Loan Debt Relief Plan. It was last updated on June 5, 2023.

H.R.3746 - Fiscal Responsibility Act of 2023

H.R.3746 - Fiscal Responsibility Act of 2023 raised the debt ceiling.^[33][34] Additionally, this bill also contained a provision ending the pause of student loan repayments 60 days after June 30, 2023, and prohibiting the Department of Education from making any additional extensions. Biden signed this bill into law on June 3, 2023.^[34]

The student loan repayment pause began on March 20, 2020, during the Trump Administration amid the coronavirus pandemic. It was extended eight times.^[35]

The Fiscal Responsibility Act of 2023 codified a timeline previously established by the Biden Administration. Following the pause's eighth extension on November 22, 2022, the Biden Administration announced payments would resume 60 days after either June 30, 2023, or a Supreme Court decision on the Student Loan Debt Relief Plan, whichever came sooner.^[3][36]

The bill was introduced by Rep. Patrick McHenry (R-Tenn.) on May 29, 2023. The House voted 314-117 to approve the bill on May 31, and the Senate voted 63-36 to approve the bill on June 1.^[34] Click here to view roll calls of these votes.

H.J.Res.45 - Providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Department of Education relating to "Waivers and Modifications of Federal Student Loans".

H.J.Res.45 - Providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Department of Education relating to "Waivers and Modifications of Federal Student Loans". is a joint resolution of disapproval under the terms of the Congressional Review Act (CRA) passed by the 118th Congress seeking to void the Biden Administration Student Loan Debt Relief Plan.^[37]

Biden vetoed this resolution on June 7.^[37]

The House of Representatives voted 218-203 to approve the resolution on May 24, 2023, with two Democrats, Reps. Jared Golden (D-Maine) and Marie Gluesenkamp Perez (D-Wash.), and 216 Republicans voting in favor. The Senate voted 52-46 to approve the resolution on June 1, with Sens. Joe Manchin (D-W.Va.), Jon Tester (D-Mont.), Kyrsten Sinema (I-Ariz.), and 49 Republicans voting in favor. The resolution was introduced by Rep. Bob Good (R-Va.) on March 27.^[37]

Timeline of student debt relief (2020-2023)

The following section provides a timeline of noteworthy student debt relief actions during the coronavirus pandemic. Timeline entries from April 19, 2022, and earlier were excerpted from a Congressional Research Service report.^[38]

Biden administration (2021 - 2023)

• June 30, 2023: The United States Supreme Court overturned the student loan debt relief plan in a 6-3 majority opinion.^[21]

• June 12, 2023: A representative for the U.S. Department of Education (DoE) clarified the timeline for the resumption of student loan repayments: "Student loan interest will resume starting on September 1, 2023, and payments will be due starting in October. ... We will notify borrowers well before payments restart."^[4]

• June 7, 2023: Biden vetoed the Congressional Review Act (CRA) resolution of disapproval seeking to void the Student Loan Debt Relief Plan.^[39]

• June 3, 2023: Biden signed the Fiscal Responsibility Act of 2023 into law, which raised the debt ceiling and contained a provision ending the pause of student loan repayments 60 days after June 30, codifying a timeline previously announced by the Biden Administration and prohibiting the Department of Education from making any additional extensions.^[3][40] The repayment pause was initially established by the Trump Administration on March 20, 2020, amid the coronavirus pandemic, and extended eight times.^[41]

• June 1, 2023: The Senate voted 52-46 to approve a Congressional Review Act (CRA) resolution of disapproval seeking to void the Student Loan Debt Relief Plan.^[37]

• May 24, 2023: The House voted 218-203 to approve a Congressional Review Act (CRA) resolution of disapproval seeking to void the Student Loan Debt Relief Plan. Two Democrats, Reps. Jared Golden (D-Maine) and Marie Gluesenkamp Perez (D-Wash.), voted alongside 216 Republicans in favor of the resolution.^[37]

• March 27, 2023: Congressional Review Act (CRA) resolutions of disapproval seeking to void the Student Loan Debt Relief Plan were introduced in the House and Senate.^[42][43]

• November 22, 2022: The Biden administration announced it would extend the student loan repayment pause while court challenges to the debt relief program were ongoing. Biden said the pause would be extended no further than June 30, 2023.^[44]

• November 14, 2022: The United States Court of Appeals for the Eighth Circuit issued a nationwide injunction blocking the Student Loan Debt Relief Plan (Nebraska v. Biden).^[17]

• November 8, 2022: United States District Court for the Northern District of Texas Judge Mark Pittman ruled that the student loan debt relief program should be vacated (Brown v. U.S. Department of Education).^[25]

• October 21, 2022: The United States Court of Appeals for the Eighth Circuit issued a stay temporarily blocking the student loan debt relief program while a lawsuit against it was considered.^[16]

• August 24, 2022: President Joe Biden (D) announced his Student Loan Debt Relief Plan, which, among other policies, would cancel up to $10,000 or $20,000 of student loan debt. Biden also announced the final student loan repayment pause would end on December 31, 2022.

• April 19, 2022: The DoE announced the establishment of IDR plan account adjustments to provide credit toward loan discharge.

• April 6, 2022: The DoE announced an extension of the interest, payment, and collections suspensions through August 31, 2022. ED also announced that “all borrowers with paused loans” will receive a “fresh start on repayment by eliminating the impacts of delinquency and default and allowing them to reenter repayment in good standing.”

• December 22, 2021: The DoE announced an extension of the interest, payment, and collections suspensions through May 1, 2022.

• October 6, 2021: The DoE announced the establishment of the PSLF Limited Waiver, which expanded the types of payments borrowers could receive PSLF payment credit for through October 31, 2022.

• August 19, 2021: The DoE announced an indefinite extension of the suspension of the requirement that certain borrowers who received a Total and Permanent Disability (TPD) discharge provide subsequent earnings documentation during the three-year post-TPD monitoring period.

• August 6, 2021: The DoE announced an extension of the interest, payment, and collections suspensions through January 31, 2022.

• March 30, 2021: The DoE announced the suspension of interest accrual and involuntary collections on GA-held FFEL program loans, retroactive to March 13, 2020. The DoE also announced the transfer of some GA-held FFEL program loans that defaulted on or after March 13, 2020, to the DoE and the placement of such loans in good standing.

• March 29, 2021: The DoE announced a suspension, through the end of the COVID-19 emergency, of the requirement that certain borrowers who received a TPD discharge provide subsequent earnings documentation in accordance with the three-year post-TPD monitoring period. ED also announced that TPD loan discharges would be restored for borrowers whose loans were reinstated because they did not submit earnings documentation in accordance with the three-year monitoring period between March 13, 2020, and the end of the COVID-19 emergency.

• January 21, 2021: The DoE announced an extension of the interest, payment, and collections suspensions through September 30, 2021.

Trump administration (2020)

• December 4, 2020: The DoE announced an extension of the interest, payment, and collections suspensions through January 31, 2021.

• August 21, 2020: The DoE announced, in accordance with a Presidential Memorandum dated August 8, 2020, an extension of the interest, payment, and collections suspensions through December 31, 2020.

• March 27, 2020: President Donald Trump (R) signed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) into law. The CARES Act suspended interest accrual, monthly loan payments, and involuntary collections on student loans through September 30, 2020. It also specified that suspended payments were to count toward the 120 monthly payments required under the PSLF program, toward the 20- or 25-year repayment periods under the income-driven repayment (IDR) plans, and toward the nine voluntary payments required for individuals to rehabilitate their defaulted loans.

• March 20, 2020: The DoE announced that all borrowers would automatically have their interest rate set to 0% for at least 60 days, each borrower would have the option to suspend their payments for at least two months, and borrowers who were more than 31 days delinquent on their loans as of March 13, 2020 would automatically have their payments suspended.

See also

• Joe Biden presidential administration
• Joe Biden's executive orders and actions
• Federal government responses to the coronavirus (COVID-19) pandemic, 2020-2022

Footnotes