Student Loans: A Timeline of Actions Taken in Light of the COVID-19 Pandemic (IF12136, Version 1)
Summary
Version 1 of a Congressional Research Service timeline, IF12136, dated June 21, 2022, of waivers and flexibilities that lawmakers and the Department of Education (ED) offered federal student loan borrowers during the COVID-19 national emergency. As of December 31, 2021, approximately $1.6 trillion in federal student loans, borrowed by or for 43.4 million individuals, remained outstanding. The CARES Act of March 27, 2020 suspended interest, payments and involuntary collections on Direct Loan program loans and counted the suspended months toward Public Service Loan Forgiveness. ED then extended the suspensions repeatedly, the latest on April 6, 2022 through August 31, 2022, when it also promised borrowers with paused loans a fresh start. ED estimated over 550,000 borrowers would gain PSLF credit under its waiver.
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June 21, 2022
Student Loans: A Timeline of Actions Taken in Light of the
COVID-19 Pandemic
Since the onset of the COVID-19 national emergency, about $3.4 billion, representing debt for approximately
lawmakers and the U.S. Department of Education (ED) 1.2 million borrowers, and ED held nearly $1.1 billion
have made available a number of waivers and flexibilities in Perkins Loans, representing debt owed by
for federal student loan borrowers. For most borrowers, approximately 358,000 borrowers.
these flexibilities include the suspension of (1) interest
accrual, (2) the requirement that borrowers make monthly Loan Waivers and Flexibilities
payments on their loans, and (3) involuntary collections The following timeline provides information on selected
activities, as well as waivers of requirements to qualify for actions taken by lawmakers and ED to provide relief to
various student loan forgiveness or discharge benefits. HEA federal student loan borrowers during, and at least in
While Congress authorized a subset of these flexibilities for part due to, the COVID-19 national emergency. The
a temporary period, ED has extended those flexibilities timeline focuses on flexibilities that primarily address ED-
numerous times since their initial expiration and has held student loans. During the COVID-19 national
effectuated other flexibilities. emergency, ED has taken a variety of other student-loan
related actions that are seemingly unrelated to the COVID-
This In Focus provides an overview of the Higher 19 pandemic. Only administrative actions for which ED has
Education Act (HEA; P.L. 89-329, as amended) Title IV explicitly referenced the COVID-19 pandemic are included
federal student loan programs affected by the COVID-19 in the timeline below.
pandemic-related flexibilities and a timeline of actions
taken by lawmakers or ED authorizing, effectuating, or For an in-depth description of flexibilities and waivers
extending such flexibilities. available to federal student loan borrowers in light of the
COVID-19 pandemic, see CRS Report R46314, Federal
HEA Student Loans Student Loan Debt Relief in the Context of COVID-19.
HEA Title IV authorizes the operation of three federal
student loan programs: the William D. Ford Direct Loan 2020
(Direct Loan) program, the Federal Family Education Loan
(FFEL) program, and the Federal Perkins Loan program.
March 20, 2020: ED announced that all borrowers of
ED-held loans would automatically have their interest
While new loans are currently authorized to be made only
rate set to 0% for at least 60 days; each borrower would
through the Direct Loan program, previously made FFEL
have the option to suspend their payments for at least
and Perkins Loans remain outstanding and borrowers
two months; and borrowers who were more than 31 days
remain responsible for repaying them. As of December 31,
delinquent on their loans as of March 13, 2020 (or who
2021, approximately $1.6 trillion in HEA Title IV loans,
became more than 31 days delinquent thereafter) would
borrowed by or on behalf of 43.4 million individuals,
automatically have their payments suspended.
remained outstanding.
March 27, 2020: Congress and the President enacted the
Direct Loan program loans are held by ED. As of Coronavirus Aid, Relief, and Economic Security Act
December 31, 2021, approximately $1.4 trillion in these (the CARES Act; P.L. 116-136). The CARES Act
loans, borrowed by or on behalf of 37.2 million suspended interest accrual, monthly loan payments, and
individuals, was outstanding. involuntary collections on Direct Loan program loans
and ED-held FFEL program loans through September
FFEL program loans may be held by private lenders, 30, 2020. It also specified that suspended payments
guaranty agencies (GAs), or ED. As of December 31,
were to count toward the 120 monthly payments
2021, approximately 10.0 million borrowers owed about
required under the Public Service Loan Forgiveness
$225.7 billion in FFEL program loans. Of that, about
(PSLF) program, toward the 20- or 25-year repayment
$117.7 billion was held by private lenders, representing
periods under the income-driven repayment (IDR) plans,
debt for about 4.5 million borrowers; $25.3 billion was
and toward the nine voluntary payments required for
held by GAs, representing debt for about 1.1 million
individuals to rehabilitate their defaulted loans. Soon
borrowers; and about $82.7 billion was held by ED,
thereafter, ED specified that these policies would apply
representing debt for between 2.8 million and 5.5
to ED-held Perkins Loans.
million borrowers.
Perkins Loan program loans may be held by August 21, 2020: ED announced, in accordance with a
institutions of higher education (IHEs) that made the Presidential Memorandum dated August 8, 2020, an
loans or by ED. As of September 23, 2021, IHEs held extension of the interest, payment, and collections
suspensions through December 31, 2020.
https://crsreports.congress.gov
Student Loans: A Timeline of Actions Taken in Light of the COVID-19 Pandemic
December 4, 2020: ED announced an extension of the Borrowers may also receive PSLF payment credit for
interest, payment, and collections suspensions through periods of military service deferment, or forbearance for
January 31, 2021. active military state duty or military mobilization.
2021 As of May 2022, more than 127,000 borrowers have
qualified for forgiveness benefits as a result of the
January 21, 2021: ED announced an extension of the
waiver. ED estimated that over 550,000 borrowers who
interest, payment, and collections suspensions through
consolidated their loans prior to the waiver would see an
September 30, 2021.
increase in their PSLF qualifying payment counts, with
March 29, 2021: ED announced a suspension, through the average borrower receiving an additional two years
the end of the COVID-19 emergency, of the requirement of progress toward forgiveness, and that many more
that certain borrowers who received a Total and borrowers who had not yet consolidated their loans
Permanent Disability (TPD) discharge provide would see progress toward receipt of PSLF benefits.
subsequent earnings documentation in accordance with
the three-year post-TPD monitoring period. ED also
December 22, 2021: ED announced an extension of the
interest, payment, and collections suspensions through
announced that TPD loan discharges would be restored
May 1, 2022.
for borrowers whose loans were reinstated because they
did not submit earnings documentation in accordance
2022
with the three-year monitoring period between March
13, 2020, and the end of the COVID-19 emergency. ED April 6, 2022: ED announced an extension of the
estimated more than 41,000 borrowers who had $1.3 interest, payment, and collections suspensions through
billion in loans reinstated would have their discharge August 31, 2022. ED also announced that “all borrowers
restored and that 190,000 borrowers in their three-year with paused loans” will receive a “fresh start on
monitoring period would not be required to submit repayment by eliminating the impacts of delinquency
earnings documentation. and default and allowing them to reenter repayment in
good standing.”
March 30, 2021: ED announced the suspension of
interest accrual and involuntary collections on GA-held April 19, 2022: ED announced the establishment of IDR
FFEL program loans, retroactive to March 13, 2020. ED plan account adjustments to provide credit toward loan
also announced the transfer of some GA-held FFEL forgiveness. Through these adjustments, ED will
program loans that defaulted on or after March 13, 2020, conduct a one-time revision to the accounts of
to ED and the placement of such loans in good standing. borrowers with Direct Loan and ED-held FFEL program
In effect, this ensured that the transferred loans would loans. Borrowers are to receive credit toward the IDR
be considered held by ED and subject to the interest, plan loan forgiveness period for any months in which
payments, and collections suspensions, retroactive to they had time in repayment status, “regardless of
March 13, 2020. ED estimated that up to 1.14 million payments made, loan type, or repayment plan”; 12 or
borrowers would be affected by this action. more months of consecutive forbearance or 36 or more
months of cumulative forbearance; months spent in
August 6, 2021: ED announced an extension of the deferment (excluding in-school deferment) prior to
interest, payment, and collections suspensions through 2013; and any time in repayment prior to consolidation.
January 31, 2022. Borrowers with loans that have accumulated time in
August 19, 2021: ED announced an indefinite extension repayment for 20 or 25 years will receive automatic loan
of the suspension of the requirement that certain forgiveness, even if they are not currently enrolled in an
borrowers who received a TPD discharge provide IDR plan. Borrowers with FFEL program loans not held
subsequent earnings documentation during the three- by ED may qualify for the account adjustment by
year post-TPD monitoring period. While ED did not consolidating their loans into the Direct Loan program
specifically reference COVID-19 in making this before ED completes implementation of the changes,
announcement, it is an extension of the policy which ED estimates will be no sooner than January 1,
announced March 29, 2021, for which ED did reference 2023. Account adjustments will also apply toward the
COVID-19. 120 monthly payments required for PSLF.
October 6, 2021: ED announced the establishment of the ED estimated that several thousand borrowers would
PSLF Limited Waiver. Under the waiver, through receive immediate IDR plan loan forgiveness, more than
October 31, 2022, borrowers may receive PSLF 3.6 million borrowers would receive at least three years
payment credit for, among others, periods of repayment of additional progress toward IDR plan loan
on Direct Loan, FFEL, and Perkins Loan program loans, forgiveness, and over 40,000 borrowers would receive
regardless of whether payments were made according to immediate PSLF program forgiveness under these
a nonqualifying repayment plan, made late, made for changes.
less than the amount due, or made prior to consolidation
into the Direct Loan program. Borrowers with loans not Alexandra Hegji, Analyst in Social Policy
made under the Direct Loan program must apply to
consolidate their loan(s) into the Direct Loan program IF12136
by October 31, 2022, to receive payment credit.
https://crsreports.congress.gov
Student Loans: A Timeline of Actions Taken in Light of the COVID-19 Pandemic
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