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If you don’t receive notice in the coming weeks, call your servicer to find out when to make your next payment. 59 votes, 15 comments. All Rights Reserved. Collection actions, wage garnishments, and Treasury offsets for defaulted federal student loans are also paused through January 31, 2021. Private student loan borrowers don’t get relief either. Now, the forbearance period will go through January 31, 2021. They’ll also count toward the number of payments required under an income-driven repayment plan and the nine months needed for loan rehabilitation. Double check your name, physical address, phone number and email. Initial forbearance can … Back in August, Trump extended the forbearance until the end of 2020. DeVos Extends Federal Student Loan Payment Suspension Into 2021. Your federal student loan payments are expected to resume in … Federal student loan borrowers can expect their payments to pause until February 2021, but now is the time to make loan modifications. If you’re in the private sector: try to make the same. You will receive credit toward your required 120 on-time payments as long as you were not in school, in a grace period, in deferment or in another type of forbearance during the automatic forbearance period. One important example is the student loan forbearance period, which Congress initially allowed through September 30. Just saw a report that the forbearance is extended another month, until Jan. 31st, 2021. 9 4 49. One servicer may automatically resume payments. Any payments you made were applied to principal once any interest accrued prior to March 13 was paid. Second Stimulus Check Calculator: How Much Will You Receive? Since the January payment due date can vary, you’ll want to contact your servicer yourself if you haven’t received a phone call, email or letter from your servicer prior to the end of the year. In response to the ongoing coronavirus national emergency, the Department of Education extended the forbearance period for federal student loans through January 31, 2021. More than 40 million student loan borrowers in the US were not expected to make payments on their federal student loans as part of the CARES Act package passed by Congress earlier this year as … Close. Federal student loan borrowers can expect their payments to pause until February 2021, but now is the time to make loan modifications. A presidential memorandum extended the suspension of federal student loan payments and interest waiver through December 31, 2020. Subject: Student loan forbearance extended thru Jan 31, 2021 due to Covid. The current federal student loan freeze — a lifeline pausing repayments interest-free for millions of borrowers in the wake of the pandemic — will now last … Betsy DeVos announced Friday. President Trump subsequently extended it to December 31. But President Trump in August ordered the U.S. Department of Education to continue freezing payments and prevent interest from accruing through Dec. 31. Biden goes in a different direction, with the president-elect recently saying he supports a loan … The $900 billion, 5,593-page stimulus bill does not address student loan debt. If payments were auto-debited from your bank account after March 13, you can ask your servicer for a refund. Earlier this month, Education Secretary Betsy DeVos extended that forbearance through […] Student Loan Forbearance Extended to 01/31/2021. DeVos Extends Federal Student Loan Payment Suspension Into 2021. “There is no harm or downside in talking to your servicer now,” says Scott Buchanan, executive director of Student Loan Servicing Alliance, the trade association of student loan servicers. ... it is likely that the forbearance will last until at least mid-2021. “The coronavirus pandemic has presented challenges for many students and borrowers, and this temporary pause in payments will help those who have been impacted,” U.S. Secretary of Education Betsy DeVos said. More than 40 million student loan … Log In Sign Up. Originally, they had been deferred until the end of September. To help support our reporting work, and to continue our ability to provide this content for free to our readers, we receive compensation from the companies that advertise on the Forbes Advisor site. Education Secretary Betsy DeVos announced Friday that the federal student loan repayment forbearance would be extended through January 31, 2021. 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