Collection actions, wage garnishments, andTreasury offsetsfor defaulted federal student loans are also paused through May 1, 2022.
Which Student Loans Does the Payment Suspension Cover?
The suspension applies to Federal Direct Loans and Federal Family Education Loans (FFELs), but only FFELs that the U.S. Department of Education owns—not FFELs held by other entities. Borrowers with Perkins Loans held by entities other than the Department of Education also aren't covered.
Private student loan borrowers don't get relief either. If you have private student loans, call your lender to see if any alternatives are available to help you out during the coronavirus crisis. Some states have reached agreements with servicers to help borrowers who don't have federal student loans.
Continuing Prohibition on Collection Actions, Wage Garnishments, and Treasury Offsets
Again, collection actions, wage garnishments, and Treasury offsets for defaulted federal student loans are on hold through May 1, 2022. Any borrower with defaulted federal loans whose wages are garnished can get a refund.
Earlier Student Loan Relief Under the Biden Administration
Since taking over the presidency, President Biden has canceled billions of dollars in federal student loan debt. In addition to the student loan relief discussed in this article, the Biden administration has: