COVID-19 Relief for Student Loan Borrowers

Last Updated: Friday, April 2, 2021

Alert:

Federal student loan flexibilities for the COVID-19 emergency have been extended through at least September 30, 2021. Visit StudentAid.gov/coronavirus for updates.

As we navigate the challenges posed by the spread of COVID-19, we remain committed to supporting borrowers. Should you have any questions about your loans and these relief efforts, or contact us for assistance.

0% Interest for Student Loans

  • The interest rate on all U.S. Department of Education (ED) held student loans serviced by FedLoan Servicing have been temporarily reduced to 0% through at least September 30, 2021.
  • FedLoan Servicing has automatically adjusted accounts so that interest doesn't accrue (i.e., accumulate). The adjustments became effective March 13, 2020.
  • This 0% interest rate change applies to all ED-owned loans in any status (in school, in grace, in repayment, in deferment/forbearance, etc.).

Temporary Suspension of Payments

  • FedLoan Servicing will automatically adjust accounts to temporarily suspend payments.
  • This temporary suspension of payments is scheduled to last from March 13, 2020, through at least September 30, 2021.
  • A borrower can request that the suspension of payments be removed at any time. If this relief benefit is removed, billing will resume.

Payments

  • Any payments (Direct Debit or otherwise) processed from March 13, 2020, through at least September 30, 2021, can be refunded; refund requests can be made by contacting us.
  • Direct Debit payments are automatically paused while payments are temporarily suspended.
  • While payments are temporarily suspended and the interest rate is reduced to 0%, you still have the option to make manual payments (i.e., via or mobile app) on your loans in any amount to make progress toward reducing your balance.
View how payments are applied
  • The full amount of your payments will be applied to principal once all the interest that accrued prior to March 13, 2020 is paid.
  • If your loans are suspended and you make a payment without providing payment instructions, any amount you pay will be allocated to the loan with the highest interest rate. Because all loans currently have a 0% interest rate, this will be based on the interest rates as of March 12, 2020 or the initial interest rate for any loan disbursed after that date. If more than one loan has the same highest interest rate, the additional amount will be allocated to any unsubsidized loans proportionately based on the principal balance. If there are no unsubsidized loans with the same highest rate, the additional amount will be allocated in the same manner to subsidized loans with the same highest rate.
  • If you have requested removal of the suspension and do not provide payment instructions, any amount you pay in excess of the total amount due will be allocated to the loan with the highest interest rate. Because all loans currently have a 0% interest rate, this will be based on the interest rates as of March 12, 2020 or the initial interest rate for any loan disbursed after that date. If more than one loan has the same highest interest rate, the additional amount will be allocated to any unsubsidized loans proportionately based on the monthly amount due. If there are no unsubsidized loans with the same highest rate, the additional amount will be allocated in the same manner to subsidized loans with the same highest rate.

Public Service Loan Forgiveness (PSLF) & Income-Driven Repayment (IDR)

  • Borrowers with a Direct Loan, who work full-time for a qualifying employer during the suspension, will receive credit toward PSLF for the period of suspension as though on-time monthly payments were made.

    NOTE: Borrowers will be required to submit a Public Service Loan Forgiveness (PSLF) & Temporary Expanded PSLF (TEPSLF) Certification & Application to certify employment for the suspended payments to qualify toward the 120 payments needed for forgiveness.

  • Borrowers currently on an IDR plan will have suspended payments count toward IDR forgiveness.

Federal Student Aid's coronavirus/COVID-19 web page is located at StudentAid.gov/coronavirus. The page includes information about relief to student loan borrowers, including those who have defaulted on their federal student loans. Please visit the page regularly for updates.