Congressional Research Service IF12136.5 (Student Loans: A Timeline of Actions Taken in Light of the COVID-19 Pandemic)
Summary
A Congressional Research Service product, IF12136 (version 5), updated August 27, 2024, giving a timeline of actions taken by lawmakers and the Department of Education (ED) on federal student loans in light of the COVID-19 national emergency. It states that for most borrowers the primary relief was the suspension of interest accrual and of the requirement to make monthly payments, both available from March 13, 2020, to September 1, 2023. It lists other relief, including the suspension of involuntary collection activities, waivers of requirements for loan forgiveness or discharge benefits, and a broad-based loan cancellation policy that was struck down by the Supreme Court. The timeline includes only administrative actions for which ED explicitly referenced the COVID-19 pandemic.
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Updated August 27, 2024
Student Loans: A Timeline of Actions Taken in Light of the
COVID-19 Pandemic
In light of the COVID-19 national emergency, lawmakers Loan Relief
and the Department of Education (ED) provided various The following timeline provides information on selected
types of relief for federal student loan borrowers. For most actions taken by lawmakers and ED to address issues faced
borrowers, the primary debt relief was the suspension of (1) by federal student loan borrowers due to, at least in part, the
interest accrual and (2) the requirement that borrowers COVID-19 national emergency. The timeline focuses on
make monthly payments on their loans, both of which were relief that primarily addresses ED-held student loans. Only
available from March 13, 2020, to September 1, 2023 (the administrative actions for which ED explicitly referenced
suspension period). Other debt relief included the the COVID-19 pandemic are included in the timeline.
suspension of involuntary collection activities, waivers of
requirements to qualify for various student loan forgiveness For an in-depth description of COVID-19 related student
or discharge benefits, and the creation of a broad-based loan loan flexibilities, see CRS Report R46314, Federal Student
cancellation policy, the latter of which was struck down by Loan Debt Relief in the Context of COVID-19.
the Supreme Court. While Congress authorized a subset of
these changes for a temporary period, ED extended some of 2020
them numerous times since their initial expiration and March 20, 2020: ED announced it would set the interest
effectuated others. rate on all ED-held loans to 0% for at least 60 days, give
borrowers of these loans the option to suspend their
This In Focus summarizes the Higher Education Act (HEA; payments for at least two months, and automatically
P.L. 89-329, as amended) federal student loan programs suspend payments on such loans that were more than 31
affected by the COVID-19 pandemic-related relief and a days delinquent starting March 13, 2020.
timeline of actions taken by lawmakers or ED authorizing,
effectuating, or extending such relief. March 27, 2020: Congress and the President enacted the
Coronavirus Aid, Relief, and Economic Security Act (P.L.
HEA Student Loans 116-136). The act suspended interest accrual, monthly loan
The HEA authorizes three federal student loan programs: payments, and involuntary collection on Direct Loan
the Direct Loan program, the Federal Family Education program loans and ED-held FFEL program loans through
Loan (FFEL) program, and the Federal Perkins Loan September 30, 2020. It specified that suspended payments
program. New loans are only authorized to be made through were to count toward the 120 monthly payments required
the Direct Loan program. Previously made FFEL and under the Public Service Loan Forgiveness (PSLF)
Perkins Loans remain outstanding. (All data in this section program, the maximum repayment periods under the
are based on CRS analysis of Office of Federal Student Aid income-driven repayment (IDR) plans, and the nine
Data Center, “Federal Student Aid Portfolio Summary.”) voluntary payments required for individuals to rehabilitate
their defaulted loans. Soon thereafter, ED specified these
The amount of outstanding federal student loan debt and policies would also apply to ED-held Perkins Loans.
number of loan recipients potentially affected by the relief
described in this In Focus fluctuated during the suspension August 21, 2020: ED announced, in accordance with a
period. At the beginning of the period, about $1.5 trillion in Presidential Memorandum dated August 8, 2020, an
federal student loan debt was outstanding, borrowed by or extension of the interest, payment, and collection
on behalf of 42.6 million individuals. At the end, about $1.6 suspensions through December 31, 2020.
trillion in such debt was outstanding, borrowed by or on
behalf of 43.4 million individuals. December 4, 2020: ED announced an extension of the
interest, payment, and collection suspensions through
In general, the debt relief described in this In Focus was January 31, 2021.
available only for student loans held by ED. All Direct
Loans (comprising 88% of outstanding federal student loan 2021
debt as of the end of the suspension period) are held by ED. January 21, 2021: ED announced an extension of the
FFELs (comprising 12% of outstanding federal student loan interest, payment, and collection suspensions through
debt) may be held by private lenders, guaranty agencies September 30, 2021.
(GAs), or ED. Perkins Loans (comprising less than 1% of
outstanding federal student loan debt) may be held by March 29, 2021: ED announced a suspension, through the
institutions of higher education or ED. end of the COVID-19 emergency, of the requirement that
certain borrowers who received a Total and Permanent
Disability (TPD) discharge provide subsequent earnings
https://crsreports.congress.gov
Student Loans: A Timeline of Actions Taken in Light of the COVID-19 Pandemic
documentation during a three-year post-TPD monitoring school deferment) prior to 2013, and any time in repayment
period. ED stated it would restore TPD loan discharges for or eligible deferment or forbearance status prior to
borrowers whose loans were reinstated because they did not consolidation. Borrowers with loans that have accumulated
submit such documentation between March 13, 2020, and time in repayment for 20 or 25 years are to receive
the end of the COVID-19 emergency. ED estimated it automatic loan forgiveness, even if they are not enrolled in
would restore the discharges of more than 41,000 borrowers an IDR plan. Account adjustments will also apply toward
who had $1.3 billion in loans reinstated and that it would the 120 monthly payments required for PSLF. ED expects
not require 190,000 borrowers in their three-year to complete the account adjustment by September 1, 2024.
monitoring period to submit earnings documentation.
ED estimated “several thousand” borrowers would receive
March 30, 2021: ED announced the suspension of interest immediate IDR plan loan forgiveness, more than 3.6
accrual and involuntary collection on GA-held FFEL million borrowers would receive at least three years of
program loans, retroactive to March 13, 2020. ED also additional progress toward IDR plan loan forgiveness, and
announced the transfer of some GA-held FFEL program over 40,000 borrowers would receive immediate PSLF
loans that defaulted on or after March 13, 2020, to ED and program forgiveness under these changes.
the placement of such loans in good standing. The
transferred loans would be considered held by ED and August 24, 2022: Invoking the HEROES Act of 2003, ED
subject to the interest, payment, and collection suspensions, announced a one-time student loan debt relief policy (debt
retroactive to March 13, 2020. ED estimated up to 1.14 relief policy) to cancel up to (1) $10,000 per borrower
million borrowers would be affected. whose adjusted gross income in 2020 or 2021 was less than
$125,000 (for individuals) or less than $250,000 (for
August 6, 2021: ED announced a “final” extension of the married couples), and (2) an additional $10,000 (for a total
interest, payment, and collection suspensions through of up to $20,000) for those borrowers who met the above
January 31, 2022. criteria and received a Pell Grant at any point. The
administration estimated up to 43 million borrowers would
August 19, 2021: ED announced an indefinite extension of receive some amount of loan cancellation with about 27
the suspension of the requirement that certain borrowers million eligible to receive up to $20,000 in cancellation
who received a TPD discharge provide subsequent earnings benefits, and about 20 million having their full balance
documentation. This was an extension of the policy cancelled.
announced March 29, 2021, for which ED referenced
COVID-19. ED announced a “final” extension of the interest, payment,
and collection suspensions through December 31, 2022.
October 6, 2021: ED announced the establishment of the
PSLF Limited Waiver. Through October 31, 2022, November 22, 2022: ED announced an extension of the
borrowers could receive PSLF payment credit for periods of interest, payment, and collection suspensions through the
repayment on Direct Loan, FFEL, and Perkins Loan earlier of 60 days after (1) ED was permitted to implement
program loans, regardless of whether payments were its debt relief policy, (2) litigation regarding the debt relief
considered non-qualifying under PSLF. Borrowers could policy was resolved, or (3) June 30, 2023.
also receive PSLF payment credit for certain periods of
deferment or forbearance. As of June 30, 2023, about 2023
647,000 borrowers had PSLF waivers processed, with June 3, 2023: Congress and the President enacted the Fiscal
forgiveness benefits totaling about $44.6 billion. Responsibility Act of 2023 (P.L. 118-5), which specified
that the interest and payment suspensions would no longer
December 22, 2021: ED announced an extension of the be effective 60 days after June 30, 2023.
interest, payment, and collection suspensions through May
1, 2022. June 30, 2023: The Supreme Court ruled that ED’s debt
relief policy exceeded its authority under the HEROES Act;
2022 thus, the policy was not implemented.
April 6, 2022: ED announced an extension of the interest,
payment, and collection suspensions through August 31, September 1, 2023: The interest accrual and payment
2022. ED also announced that “all borrowers with paused suspension ended. In September 2023, borrowers began
loans” would receive a “fresh start on repayment by receiving bills with their payment amounts and due dates at
eliminating the impacts of delinquency and default and least 21 days before the due date.
allowing them to reenter repayment in good standing.”
October 2023: Most borrowers’ first payments following
April 19, 2022: ED announced the establishment of IDR the payment suspension were due in October 2023.
plan account adjustments under which it will conduct a one-
time revision to the accounts of borrowers with Direct Loan October 1, 2024: Involuntary collection on defaulted loans
and ED-held FFEL program loans. Borrowers are to receive is set to resume on this date.
credit toward the IDR plan loan forgiveness period for any
months in which they had time in repayment status, at least Alexandra Hegji, Specialist in Social Policy
12 of consecutive forbearance or at least 36 of cumulative
forbearance, months spent in deferment (excluding in- IF12136
https://crsreports.congress.gov
Student Loans: A Timeline of Actions Taken in Light of the COVID-19 Pandemic
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