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As you may have heard, the U.S. Department of Education announced another extension of the flexibilities offered to federal student loan borrowers. Understanding these options can help you make more informed decisions about paying your bills and prioritizing your debts. 

You don’t need to hire a company to help you get this student loan payment relief. The program is already in place and there’s nothing you need to do to enroll. Anyone who tells you they can help you sign up for this program for a fee is a scammer.

So, just to recap, what does this mean for you if you have a federal student loan?

  1. This program gives temporary payment relief to borrowers with qualifying federal student loans. But some federal student loans don’t qualify – for example, older Family Federal Education Loan (FFEL) program loans or Perkins Loans that are owned by the school you attended. Contact your federal loan servicer online or by phone to find out if your loans are eligible.
  2. If your federal loans are covered, the U.S. Department of Education has automatically placed your loans into what’s called “administrative forbearance.” That means you can stop making payments on those loans right away. If your payments automatically come out of your bank account, check if any payments have been processed since March 13, 2020. If they have, you may be able to get a refund as part of administrative forbearance.
  3. If you want to keep making payments on your qualifying federal student loan, the interest rate is now 0%. So any payments you make during the forbearance period may help you pay off your debt faster. If you’re on an income-based repayment program and/or a forgiveness program, you should check out Federal Student Aid's Coronavirus page to see which option makes sense for you.
  4. If your federal student loans are in default, the U.S. Department of Education has stopped making collection calls, and sending letters or billing statements through the end of the pause. And if your federal loans were in default and your employer continues to garnish your wages, you’ll get a refund.

This program only applies to federal student loans. Not sure what kinds of student loans you have? Here are two things you can do to find out:

  • Get a complete list of your private and federal student loans by pulling your credit report. (In fact, you can get your report for free every week through December 2023.) Read through it and find your student loans, taking note of the companies that are your lenders or loan servicers. Compare it to the full list of federal loan servicers found here.
  • Confirm which of your loans are federal. Log into FSA or call the Federal Student Aid Information Center (FSAIC) at 1-800-433-3243.

Updated November 23, 2022 to reflect the extension of the student loan payment pause. Visit the U.S. Department of Education to learn more.

Updated September 23, 2022 to reflect the extension of weekly free credit reports through December 2023.

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