Borrowers have not had to make payments since March, but relief was scheduled to expire on December 31. DeVos also extended the pause on accrued interest, as well as the suspension of collections on overdue loans.
A larger version of student loan relief was included in the $ 2 trillion economic stimulus package signed two weeks later. As part of this program, the U.S. government automatically suspended payments and waived interest on federal student loans until September. Trump then moved the expiration date to the end of the year by executive decision.
The suspension and waiver of interest only applies to loans held by the federal government. This covers about 85% of all federal student loans, including those known as Federal Direct Loans and PLUS Loans that parents can take out on behalf of their children.
It excludes certain federal loans that are guaranteed by the government but are not technically owned by it. In general, these were disbursed before 2010.
Although borrowers will not have to make payments until January 31, they will still be able to do so and will benefit from the 0% interest rate.