This guidance is not award-year-specific and applies across award years.
This AskRegs Knowledgebase Q&A was updated on June 5, 2023 to indicate that Section 271 of the Fiscal Responsibility Act of 2023 ends the COVID-19 federal student loan repayment pause 60 days after June 30, 2023. According to the U.S. Department of Education (ED), this means interest accrual resumes on September 1, 2023 and payments will be due starting in October.
Yes. Both payments and interest are automatically suspended on all federally held Federal Perkins Loans during the same period as the COVID-19 student loan payment pause. On a voluntary basis, schools that hold Perkins Loans may choose to provide the same suspension of interest and payments to the loans they hold.
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Federal Perkins Loans |
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Zero Percent Interest from March 13, 2020 Through End of Payment Pause |
Suspended payments from March 13, 2020 Through End of Payment Pause* |
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Federally Held Perkins |
Yes, automatically |
Yes, automatically |
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Perkins Held By Schools |
Yes, if school chooses* |
Yes, if school chooses* |
*For the same period, ED also authorizes schools the option to grant, at a maximum, a three-month forbearance on Perkins Loans for borrowers who are unable to make payments due to a COVID-19 interruption. Interest continues to accrue during this forbearance.
CARES Act and Presidential Memorandum: Under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), there were no provisions for the suspension of Federal Perkins Loan payments or interest. The CARES Act only suspends payments and interest on all federally held Federal Direct Student Loans (Direct Loans) and Federal Family Education Loan (FFEL) Program loans (subsidized, unsubsidized, parent PLUS, graduate PLUS). However, ED's COVID-19 Emergency Relief and Federal Student Aid website says that the interest suspension also applies to federally held Perkins Loans. Also, the August 8, 2020 Presidential Memorandum includes all federally held student loans.
Electronic Announcements: The April 3, 2020 Electronic Announcement expands coverage to Federal Perkins Loans held by schools. On a voluntary basis, schools that hold Perkins Loans may choose to provide the same suspension of interest and payments to the loans they hold. For the same period, schools also may choose to grant a forbearance of up to three months on Perkins Loans for borrowers who are unable to make payments due to a COVID-19 interruption.
Please see ED’s COVID-19 Emergency Relief and Federal Student Aid website for more information, as that website is continuously being updated.
Note: According to guidance NASFAA has received from ED, the suspension of interest is not an incentive repayment plan created by the institution under 34 CFR 674.33(f).
Update Notes:
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