Student Loans: A Timeline of Actions Taken in Light of the COVID-19 Pandemic (IF12136, Version 3, Updated November 28, 2022)
Summary
Version 3 of a Congressional Research Service timeline, IF12136, updated November 28, 2022 and written by Alexandra Hegji, of actions lawmakers and the Department of Education (ED) took for federal student loan borrowers during the COVID-19 national emergency. It runs from the March 2020 suspension of interest accrual, monthly payments and involuntary collections through the repeated extensions that followed. The entry for August 24, 2022 records the one-time debt relief policy to cancel up to $10,000 per borrower with income under $125,000, plus another $10,000 for Pell Grant recipients. On November 22, 2022, ED extended the suspensions to the earlier of 60 days after it may implement that policy or the litigation over it is resolved, or June 30, 2023. As of October 2022, about 236,000 borrowers had qualified for about $14 billion in forgiveness under the PSLF Limited Waiver.
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Updated November 28, 2022
Student Loans: A Timeline of Actions Taken in Light of the
COVID-19 Pandemic
Since the onset of the COVID-19 national emergency, Loan Relief
lawmakers and the U.S. Department of Education (ED) The following timeline provides information on selected
have provided various types of relief for federal student actions taken by lawmakers and ED to provide relief to
loan borrowers. For most borrowers, these include the federal student loan borrowers during, and at least in part
suspension of (1) interest accrual, (2) the requirement that due to, the COVID-19 national emergency. The timeline
borrowers make monthly payments on their loans, and (3) focuses on relief that primarily addresses ED-held student
involuntary collections activities, as well as waivers of loans. During the COVID-19 national emergency, ED has
requirements to qualify for various student loan forgiveness taken other student-loan related actions that are seemingly
or discharge benefits and the creation of a new broad-based unrelated to the COVID-19 pandemic. Only administrative
loan cancellation policy. While Congress authorized a actions for which ED has explicitly referenced the COVID-
subset of these changes for a temporary period, ED has 19 pandemic are included in the timeline below.
extended some of them numerous times since their initial
expiration and has effectuated others. For an in-depth description of relief available to federal
student loan borrowers in light of the COVID-19 pandemic,
This In Focus provides an overview of the Higher see CRS Report R46314, Federal Student Loan Debt Relief
Education Act (HEA; P.L. 89-329, as amended) Title IV in the Context of COVID-19.
federal student loan programs affected by the COVID-19
pandemic-related relief and a timeline of actions taken by 2020
lawmakers or ED authorizing, effectuating, or extending March 20, 2020: ED announced that it would set the
such relief. interest rate on all ED-held loans to 0% for at least 60 days;
give borrowers of these loans the option to suspend their
HEA Student Loans payments for at least two months; and automatically
HEA Title IV authorizes the operation of three federal suspend payments on such loans that were more than 31
student loan programs: the Direct Loan program, the days delinquent as of March 13, 2020 (or that became more
Federal Family Education Loan (FFEL) program, and the than 31 days delinquent thereafter).
Federal Perkins Loan program. New loans are currently
authorized to be made only through the Direct Loan March 27, 2020: Congress and the President enacted the
program. Previously made FFEL and Perkins Loans remain Coronavirus Aid, Relief, and Economic Security Act (the
outstanding, and borrowers remain responsible for repaying CARES Act; P.L. 116-136). The CARES Act suspended
them. Approximately $1.6 trillion in HEA Title IV loans, interest accrual, monthly loan payments, and involuntary
owed by about 45 million borrowers is outstanding. collections on Direct Loan program loans and ED-held
FFEL program loans through September 30, 2020. It
Direct Loan program loans are held by ED. As of June specified that suspended payments were to count toward the
30, 2022, about $1.4 trillion in these loans, borrowed by 120 monthly payments required under the Public Service
or on behalf of 37.1 million individuals, was Loan Forgiveness (PSLF) program, the 20- or 25-year
outstanding. repayment periods under the income-driven repayment
(IDR) plans, and the nine voluntary payments required for
FFEL program loans may be held by private lenders, individuals to rehabilitate their defaulted loans. Soon
guaranty agencies (GAs), or ED. As of June 30, 2022,
thereafter, ED specified that these policies would apply to
about $109 billion in these loans was held by private ED-held Perkins Loans.
lenders, representing debt for about 4.1 million
borrowers; $25.5 billion was held by GAs, representing
August 21, 2020: ED announced, in accordance with a
debt for about 1.1 million borrowers; and about $79.5 Presidential Memorandum dated August 8, 2020, an
billion was held by ED, representing debt for between
extension of the interest, payment, and collections
2.5 million and 5.3 million borrowers. suspensions through December 31, 2020.
Perkins Loan program loans may be held by
institutions of higher education (IHEs) or ED. As of December 4, 2020: ED announced an extension of the
September 15, 2022, IHEs held about $2.6 billion, interest, payment, and collections suspensions through
representing debt for about 910,000 million borrowers, January 31, 2021.
and ED held nearly $1.4 billion, representing debt owed
by about 439,000 borrowers.
https://crsreports.congress.gov
Student Loans: A Timeline of Actions Taken in Light of the COVID-19 Pandemic
2021 December 22, 2021: ED announced an extension of the
January 21, 2021: ED announced an extension of the interest, payment, and collections suspensions through May
interest, payment, and collections suspensions through 1, 2022.
September 30, 2021.
2022
March 29, 2021: ED announced a suspension, through the April 6, 2022: ED announced an extension of the interest,
end of the COVID-19 emergency, of the requirement that payment, and collections suspensions through August 31,
certain borrowers who received a Total and Permanent 2022. ED also announced that “all borrowers with paused
Disability (TPD) discharge provide subsequent earnings loans” will receive a “fresh start on repayment by
documentation in accordance with the three-year post-TPD eliminating the impacts of delinquency and default and
monitoring period. ED also announced that it would restore allowing them to reenter repayment in good standing.”
TPD loan discharges for borrowers whose loans were
reinstated because they did not submit such earnings April 19, 2022: ED announced the establishment of IDR
documentation between March 13, 2020, and the end of the plan account adjustments to provide credit toward loan
COVID-19 emergency. ED estimated it would restore the forgiveness. Specifically, ED will conduct a one-time
discharges of more than 41,000 borrowers who had $1.3 revision to the accounts of borrowers with Direct Loan and
billion in loans reinstated and that it would not require ED-held FFEL program loans. Borrowers are to receive
190,000 borrowers in their three-year monitoring period to credit toward the IDR plan loan forgiveness period for any
submit earnings documentation. months in which they had time in repayment status,
“regardless of payments made, loan type, or repayment
March 30, 2021: ED announced the suspension of interest plan”; 12 or more months of consecutive forbearance or 36
accrual and involuntary collections on GA-held FFEL or more months of cumulative forbearance; months spent in
program loans, retroactive to March 13, 2020. ED also deferment (excluding in-school deferment) prior to 2013;
announced the transfer of some GA-held FFEL program and any time in repayment or eligible deferment or
loans that defaulted on or after March 13, 2020, to ED and forbearance status prior to consolidation. Borrowers with
the placement of such loans in good standing. In effect, this loans that have accumulated time in repayment for 20 or 25
ensured that the transferred loans would be considered held years will receive automatic loan forgiveness, even if they
by ED and subject to the interest, payments, and collections are not currently enrolled in an IDR plan. Borrowers with
suspensions, retroactive to March 13, 2020. ED estimated non-ED-held loans may receive account adjustment benefits
that up to 1.14 million borrowers would be affected by this by consolidating their loans into the Direct Loan program
action. by May 1, 2023. Account adjustments will also apply
toward the 120 monthly payments required for PSLF.
August 6, 2021: ED announced a “final” extension of the
interest, payment, and collections suspensions through ED estimated several thousand borrowers would receive
January 31, 2022. immediate IDR plan loan forgiveness, more than 3.6
million borrowers would receive at least three years of
August 19, 2021: ED announced an indefinite extension of additional progress toward IDR plan loan forgiveness, and
the suspension of the requirement that certain borrowers over 40,000 borrowers would receive immediate PSLF
who received a TPD discharge provide subsequent earnings program forgiveness under these changes.
documentation. While ED did not specifically reference
COVID-19 in making this announcement, it extended the August 24, 2022: ED announced a one-time student loan
policy announced March 29, 2021, for which ED did debt relief policy (debt relief policy) to cancel up to (1)
reference COVID-19. $10,000 per borrower whose adjusted gross income in 2020
or 2021 was less than $125,000 (for individuals) or less
October 6, 2021: ED announced the establishment of the than $250,000 (for married couples or heads of household),
PSLF Limited Waiver. Under the waiver, through October and (2) an additional $10,000 for those borrowers who meet
31, 2022, borrowers could receive PSLF payment credit for, the above criteria and received a Pell Grant at any point. ED
among others, periods of repayment on Direct Loan, FFEL, estimated that up to 43 million borrowers would receive
and Perkins Loan program loans, regardless of whether some amount of loan cancellation, with about 27 million
payments were made according to a nonqualifying eligible to receive up to $20,000 in cancellation benefits,
repayment plan, late, for less than the amount due, or prior and about 20 million having their full balance cancelled.
to consolidation into the Direct Loan program. Borrowers
could also receive PSLF payment credit for periods of ED announced a “final” extension of the interest, payment,
economic hardship deferment on or after January 1, 2013; and collections suspensions through December 31, 2022.
military service deferment; or forbearance for active
military state duty or military mobilization. November 22, 2022: ED announced an extension of the
interest, payment, and collections suspensions through the
As of October 2022, about 236,000 borrowers qualified for earlier of 60 days after (1) ED is permitted to implement its
forgiveness benefits totaling about $14 billion as a result of debt relief policy, (2) litigation regarding the debt relief
the waiver; more than 1 million borrowers have received policy is resolved, or (3) June 30, 2023.
additional PSLF payment credit.
Alexandra Hegji, Analyst in Social Policy
IF12136
https://crsreports.congress.gov
Student Loans: A Timeline of Actions Taken in Light of the COVID-19 Pandemic
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