Student Loan Payment Suspension
The office of Federal Student Aid is currently providing the following relief on ED-held federal student loans:
- Suspend required monthly loan payments
- Stop collections on defaulted loans
- Temporarily set interest rates to 0%
On March 27, 2020 Congress passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which provided for the above relief measures through Sept. 30, 2020. It has been extended multiple times.
On Dec. 22, 2021, the U.S. Department of Education (ED) extended the student loan payment pause through May 02, 2022.
Additional information can be found here:
COVID-19 Resources for Schools, Students and Families
Default Management Impacts
Pantheon has suspended delinquency assistance for our clients for the duration of the loan payment freeze. We intend to restart service whenever the pause is lifted. The Department of Ed and loan servicers will be contacting all borrowers ahead of time to inform them when payments will resume.
SCHOOL DEFAULT RATES ARE NOT AT RISK: No required monthly payments means no possibility of delinquency which means no potential to default.