On his first day in office, President Biden fulfilled his promise to extend forbearance on federal student loans. That means that you don’t need to make payments until October, 2021. He has also indicated that he wants to reform and expand certain elements of federal loans, including parts of Public Service Loan Forgiveness, but those actions will come later. In the meantime, you don’t need to worry about any of the following:
- All Direct Loans (including those in default)
- All FFEL Program loans (including those in default)
- All Federal Perkins Loans (including those in default)
- Defaulted HEAL loans
Interest on these loans remains at 0% during this time, and if you have an IDR plan, you do not need to recertify your income. Further, if you’re seeking PSLF, these months of forbearance will count as QPs even without making your usual payments.
We will have more information on the Biden Administration’s actions on student loans as announcements are made. We will update our website with updates as they become available. If you have any questions about how this impacts you or your loved ones, please do not hesitate to get in touch.