This guidance is not award-year-specific and applies across award years.
This AskRegs Knowledgebase Q&A was updated on October 23, 2022 to reflect the Biden administration announcement, which further extends the COVID-19 federal student loan payment pause.
Under the U.S. Department of Education's (ED's) latest extension, "Payments will resume 60 days after the Department is permitted to implement the [Biden Student Loan Forgiveness] program or the litigation is resolved, which will give the Supreme Court an opportunity to resolve the case during its current Term,” ED’s notice reads. “If the program has not been implemented and the litigation has not been resolved by June 30, 2023 – payments will resume 60 days after that.”
Unfortunately, we don’t yet know if new loans will carry the interest suspension. We have asked ED but have not gotten a response. As soon as we have a definitive answer to this question, we will update this AskRegs Q&A and post it in our COVID-19 Web Center and in Today's News.
Remember: For borrowers who are receiving the interest suspension, the interest rate technically is not zero on these loans. Even if the loan servicer indicates a zero percent interest rate, the interest rate on the loans remains the interest rate assigned to the loan when it was originated. Accrual of interest is suspended from March 13, 2020 through the end of the payment pause on eligible federal student loans.
Update Notes:
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