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 August 6, 2021 the Biden Administration extended the student loan pause until January 31, 2022. At the time they stated it would be the “final extension”. Borrowers should plan to start making required monthly payments again in February 2022.
Additional information can be found here:
Default Management Impacts
Pantheon has suspended delinquency assistance for our clients for the duration of the loan payment freeze. We intend to restart service in February 2022. 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.