This AskRegs Knowledgebase Q&A has been updated to reflect the Biden administration announcement, which extends the federal student loan administrative forbearance period, the pause in interest accrual, and the suspension of collections activity through August 31, 2022 for all federally held student loans.
Unfortunately, NASFAA is unsure at this time if the the interest suspension applies to federally held loans that are in an in-school deferment status. We have obtained second-hand information through a school from a loan servicer that the interest waiver does include those borrowers who are in an in-school deferment, but we have heard nothing directly from ED. We realize your students are asking about this; our advice is have them contact their loan servicer directly.
In the meantime, we have asked ED. As soon as we have a definitive answer to this question, we will update this AskRegs Knowledgebase Q&A and post it in Today's News.
Note: Under the CARES Act, accrual of interest is suspended from March 13, 2020 through August 31, 2022 on eligible federal student loans. Since passage of the CARES Act, the suspension has been extended multiple times through presidential orders.
AskRegs Q&As represent NASFAA's understanding of regulatory and compliance issues. They are FOR INTERNAL USE ONLY. While NASFAA believes AskRegs Q&As are accurate and factual, they have not been reviewed or approved by the U.S. Department of Education (ED). If you should need written confirmation of AskRegs information for audit or program review purposes, please contact your ED School Participation Division. NASFAA shall not be liable for technical or editorial errors or omissions contained herein; nor for incidental or consequential damages resulting from the furnishing, performance, or use of this material.