Good news for employees with student loans: The U.S. Secretary of Education Betsy DeVos has extended coronavirus emergency relief benefits for borrowers with federal student loans through January 31, 2021.
The original coronavirus relief bill, known as the CARES Act and signed into law on March 27, 2020, helped most federal student loan borrowers by temporarily pausing payments and involuntary collections on federally held student loans through September 30. In August, President Donald Trump signed a memorandum extending the pause until December 31.
For the majority of 2020, borrowers with student loans held by the federal government have not been required to make payments on those loans, nor has interest accrued on them. In addition, collection activities such as wage garnishment and the reduction of tax refunds have been prohibited, providing help for student loan borrowers struggling during the COVID-19 pandemic.