Are Perkins Loan Payments and Interest Suspended From March 13, 2020 Through January 31, 2022?

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This AskRegs Knowledgebase Q&A has been updated to reflect the U.S. Department of Education StudentAid.gov announcement, which extends the federal student loan administrative forbearance period, the pause in interest accrual, and the suspension of collections activity through January 31, 2022 for all federally held student loans.

Yes. Both payments and interest are automatically suspended on all federally held Federal Perkins Loans from March 13, 2020 through January 31, 2022. 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.

Federal Perkins Loans

 

Zero Percent Interest from March 13, 2020 through January 31, 2022

Suspended payments from March 13, 2020 through January 31, 2022*

Federally Held Perkins

Yes, automatically

Yes, automatically

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 Coronavirus and Forbearance Info for Students, Borrowers, and Parents Q&A 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 Coronavirus and Forbearance Info for Students, Borrowers, and Parents website for more information, as that website is continuously being updated.

Notes:

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