Updated June 23, 2023
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 Department of Education (ED) have
The following timeline provides information on selected
provided various types of relief for federal student loan
actions taken by lawmakers and ED to address issues faced
borrowers. For most borrowers, these include the
by federal student loan borrowers due to, at least in part, the
suspension of (1) interest accrual, (2) the requirement that
COVID-19 national emergency. The timeline focuses on
borrowers make monthly payments on their loans, and (3)
relief that primarily addresses ED-held student loans.
involuntary collections activities, as well as waivers of
During the COVID-19 pandemic, ED has taken other
requirements to qualify for various student loan forgiveness
student-loan related actions that are seemingly unrelated to
or discharge benefits and the creation of a new broad-based
the COVID-19 pandemic. Only administrative actions for
loan cancellation policy. While Congress authorized a
which ED explicitly referenced the COVID-19 pandemic
subset of these changes for a temporary period, ED
are included in the timeline.
extended some of them numerous times since their initial
expiration and has effectuated others.
For an in-depth description of flexibilities available to
federal student loan borrowers in light of the COVID-19
This In Focus provides an overview of the Higher
pandemic, see CRS Report R46314, Federal Student Loan
Education Act (HEA; P.L. 89-329, as amended) Title IV
Debt Relief 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 it would set the interest
such relief.
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 three federal student loan
suspend payments on such loans that were more than 31
programs: the Direct Loan program, the Federal Family
days delinquent as of March 13, 2020 (or that became more
Education Loan (FFEL) program, and the Federal Perkins
than 31 days delinquent thereafter).
Loan program. Currently, new loans are only authorized to
be made through the Direct Loan program. Previously made
March 27, 2020: Congress and the President enacted the
FFEL and Perkins Loans remain outstanding, and
Coronavirus Aid, Relief, and Economic Security Act (the
borrowers remain responsible for repaying them. About
CARES Act; P.L. 116-136). The CARES Act suspended
$1.6 trillion in Title IV loans, owed by about 45 million
interest accrual, monthly loan payments, and involuntary
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
specified that suspended payments were to count toward the
March 31, 2023, about $1.5 trillion in these loans,
120 monthly payments required under the Public Service
borrowed by or on behalf of 38.3 million individuals,
Loan Forgiveness (PSLF) program, the 20- or 25-year
was outstanding.
repayment periods under the income-driven repayment
•
(IDR) plans, and the nine voluntary payments required for
FFEL program loans are held by private lenders,
individuals to rehabilitate their defaulted loans. Soon
guaranty agencies (GAs), or ED. As of March 1, 2023,
thereafter, ED specified that these policies would apply to
about $90.4 billion in these loans was held by private
ED-held Perkins Loans.
lenders, representing debt for about 3.4 million
borrowers; $25.0 billion was held by GAs, representing
August 21, 2020: ED announced, in accordance with a
debt for about 1.1 million borrowers; and about $79.4
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 5.1 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 borrowers, and ED
January 31, 2021.
held nearly $1.4 billion, representing debt owed by
about 439,000 borrowers.
https://crsreports.congress.gov

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Student Loans: A Timeline of Actions Taken in Light of the COVID-19 Pandemic
2021
2022. ED also announced that “all borrowers with paused
January 21, 2021: ED announced an extension of the
loans” will receive a “fresh start on repayment by
interest, payment, and collections suspensions through
eliminating the impacts of delinquency and default and
September 30, 2021.
allowing them to reenter repayment in good standing.”
March 29, 2021: ED announced a suspension, through the
April 19, 2022: ED announced the establishment of IDR
end of the COVID-19 emergency, of the requirement that
plan account adjustments to provide credit toward loan
certain borrowers who received a Total and Permanent
forgiveness. Specifically, ED will conduct a one-time
Disability (TPD) discharge provide subsequent earnings
revision to the accounts of borrowers with Direct Loan and
documentation in accordance with the three-year post-TPD
ED-held FFEL program loans. Borrowers are to receive
monitoring period. ED also announced it would restore
credit toward the IDR plan loan forgiveness period for any
TPD loan discharges for borrowers whose loans were
months in which they had time in repayment status,
reinstated because they did not submit such earnings
“regardless of payments made, loan type, or repayment
documentation between March 13, 2020, and the end of the
plan”; 12 or more months of consecutive forbearance or 36
COVID-19 emergency. ED estimated it would restore the
or more months of cumulative forbearance; months spent in
discharges of more than 41,000 borrowers who had $1.3
deferment (excluding in-school deferment) prior to 2013;
billion in loans reinstated and that it would not require
and any time in repayment or eligible deferment or
190,000 borrowers in their three-year monitoring period to
forbearance status prior to consolidation. Borrowers with
submit earnings documentation.
loans that have accumulated time in repayment for 20 or 25
years are to receive automatic loan forgiveness, even if they
March 30, 2021: ED announced the suspension of interest
are not currently enrolled in an IDR plan. Borrowers with
accrual and involuntary collections on GA-held FFEL
non-ED-held loans may receive account adjustment benefits
program loans, retroactive to March 13, 2020. ED also
by consolidating their loans into the Direct Loan program
announced the transfer of some GA-held FFEL program
by the end of 2023. Account adjustments will also apply
loans that defaulted on or after March 13, 2020, to ED and
toward the 120 monthly payments required for PSLF.
the placement of such loans in good standing. The
transferred loans would be considered held by ED and
ED estimated several thousand borrowers would receive
subject to the interest, payments, and collections
immediate IDR plan loan forgiveness, more than 3.6
suspensions, retroactive to March 13, 2020. ED estimated
million borrowers would receive at least three years of
up to 1.14 million borrowers would be affected.
additional progress toward IDR plan loan forgiveness, and
over 40,000 borrowers would receive immediate PSLF
August 6, 2021: ED announced a “final” extension of the
program forgiveness under these changes.
interest, payment, and collections suspensions through
January 31, 2022.
August 24, 2022: ED announced a one-time student loan
debt relief policy (debt relief policy) to cancel up to (1)
August 19, 2021: ED announced an indefinite extension of
$10,000 per borrower whose adjusted gross income in 2020
the suspension of the requirement that certain borrowers
or 2021 was less than $125,000 (for individuals) or less
who received a TPD discharge provide subsequent earnings
than $250,000 (for married couples or heads of household),
documentation. While ED did not specifically reference
and (2) an additional $10,000 for those borrowers who meet
COVID-19 in making this announcement, it extended the
the above criteria and received a Pell Grant at any point. ED
policy announced March 29, 2021, for which ED did
estimated up to 43 million borrowers would receive some
reference COVID-19.
amount of loan cancellation with about 27 million eligible
to receive up to $20,000 in cancellation benefits, and about
October 6, 2021: ED announced the establishment of the
20 million having their full balance cancelled.
PSLF Limited Waiver. Under the waiver, through October
31, 2022, borrowers could receive PSLF payment credit for
ED announced a “final” extension of the interest, payment,
periods of repayment on Direct Loan, FFEL, and Perkins
and collections suspensions through December 31, 2022.
Loan program loans, regardless of whether payments were
made according to a non PSLF-qualifying repayment plan,
November 22, 2022: ED announced an extension of the
late, for less than the amount due, or prior to consolidation
interest, payment, and collections suspensions through the
into the Direct Loan program. Borrowers could also receive
earlier of 60 days after (1) ED is permitted to implement its
PSLF payment credit for certain periods of deferment or
debt relief policy, (2) litigation regarding the debt relief
forbearance. As of March 31, 2023, about 482,908
policy is resolved, or (3) June 30, 2023.
borrowers qualified for forgiveness benefits totaling about
$32.8 billion as a result of the waiver.
2023
June 3, 2023: Congress and the President enacted the Fiscal
December 22, 2021: ED announced an extension of the
Responsibility Act of 2023 (P.L. 118-5), which specified
interest, payment, and collections suspensions through May
that the interest and payment suspensions are to no longer
1, 2022.
be effective 60 days after June 30, 2023.
2022
Alexandra Hegji, Analyst in Social Policy
April 6, 2022: ED announced an extension of the interest,
payment, and collections suspensions through August 31,
IF12136
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Student Loans: A Timeline of Actions Taken in Light of the COVID-19 Pandemic


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https://crsreports.congress.gov | IF12136 · VERSION 4 · UPDATED

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