In March 2020, Congress passed a COVID-19 relief bill. Amongst other things it directed the Education Department to suspend required payments and set interest rates to 0% on all federally held loans until September 30, 2020.
On August 8, 2020, former President Donald Trump extended the suspension until December 31, 2020. Then, on December 4, 2020, Trump made another extension until January 31, 2021, without any changes to the original bill.
After taking office, on January 20, 2021, President Joe Biden, made another extension on the suspension, extending it at least until September 30, 2021.
The above-mentioned suspension applies to federally held student loans only and has no effect on private loans.
For those who choose to keep on making payments, it is a great opportunity to pay off the balance quicker, as the entire amount will be applied to the principal amount. It is important to understand your obligations and options as the suspension period continues, as well as what will happen to your payment plan once the suspension of required payments ends.
As mentioned in his presidential campaign President Biden is working on cancelling $10,000 in loans, per borrower, relieving some of the $1.6 trillion in student debts.