President Biden, Vice President Harris, and the U.S. Department of Education have announced a three-part plan to help working and middle-class federal student loan borrowers transition back to regular payment as pandemic-related support expires
Part 1: Final extension of the student loan repayment pause
The U.S. Department of Education has announced that the student loan payment pause is extended until the U.S. Department of Education is permitted to implement the debt relief program or current litigation is resolved. Payments will restart 60 days later. If the debt relief program has not been implemented and the litigation has not been resolved by June 30, 2023 - payments will resume 60 days after that. Borrowers before will be notified before loan repayment restarts.
Part 2: Providing targeted debt relief to low- and middle-income families
To smooth the transition back to repayment and help borrowers at highest risk of delinquencies or default once payments resume, the U.S. Department of Education will provide up to $20,000 in debt relief to Pell Grant recipients with loans held by the Department of Education and up to $10,000 in debt relief to non-Pell Grant recipients. Borrowers are eligible for this relief if their individual income is less than $125,000 or $250,000 for households. Get details about one-time student loan debt relief.
Part 3: Make the student loan system more manageable for current and future borrowers
Income-based repayment plans have long existed within the U.S. Department of Education. However, the Biden-Harris Administration is proposing a rule to create a new income-driven repayment plan that will substantially reduce future monthly payments for lower- and middle-income borrowers.
View the Student Debt Relief Plan Explained webpage for more detailed information.
Federal student loan borrowers should start preparing now to return to repayment. We encourage you to:
Log in to your loan servicer's website or mobile app to make sure your contact information is current. To find out who your loan servicer is, borrowers should visit your account dashboard-by logging in to StudentAid.gov/login-find the "My Aid" section, and select "View loan servicer details," or call the Federal Student Aid Information Center (FSAIC) at 1-800-4-FED-AID (1-800-433-3243).
Check out the Loan Simulator at StudentAid.gov/loan-simulator to make sure you are on the best repayment plan, especially if your financial situation has changed during the COVID-19 emergency.
Contact your loan servicer to restart auto-debit, sign up for auto-debit for the first time, or understand the easiest options to make a payment. Direct Loan borrowers enrolled in auto-debit receive a 0.25% interest rate deduction on their loans
Check your personal email and postal mail for student loan payment updates-including your monthly payment amount and due date-from your loan servicer and the U.S. Department of Education Office of Federal Student Aid.
Learn how to avoid student loan scams. Federal student loan servicers provide free help with questions or concerns about loan payments.