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1 1 (August 27, 2024)

handle is hein.crs/goveqlz0001 and id is 1 raw text is: Congr Infrnrnim sionol H search Service Ierji I tive I ba e sii ce 1914 0 Updated August 27, 2024 Student Loans: A Timeline of Actions Taken in Light of the COVID-19 Pandemic In light of the COVID-19 national emergency, lawmakers and the Department of Education (ED) provided various types of relief for federal student loan borrowers. For most borrowers, the primary debt relief was the suspension of (1) interest accrual and (2) the requirement that borrowers make monthly payments on their loans, both of which were available from March 13, 2020, to September 1, 2023 (the suspension period). Other debt relief included the suspension of involuntary collection activities, waivers of requirements to qualify for various student loan forgiveness or discharge benefits, and the creation of a broad-based loan cancellation policy, the latter of which was struck down by the Supreme Court. While Congress authorized a subset of these changes for a temporary period, ED extended some of them numerous times since their initial expiration and effectuated others. This In Focus summarizes the Higher Education Act (HEA; P.L. 89-329, as amended) federal student loan programs affected by the COVID-19 pandemic-related relief and a timeline of actions taken by lawmakers or ED authorizing, effectuating, or extending such relief. HA Student Loans The HEA authorizes three federal student loan programs: the Direct Loan program, the Federal Family Education Loan (FFEL) program, and the Federal Perkins Loan program. New loans are only authorized to be made through the Direct Loan program. Previously made FFEL and Perkins Loans remain outstanding. (All data in this section are based on CRS analysis of Office of Federal Student Aid Data Center, Federal Student Aid Portfolio Summary.) The amount of outstanding federal student loan debt and number of loan recipients potentially affected by the relief described in this In Focus fluctuated during the suspension period. At the beginning of the period, about $1.5 trillion in federal student loan debt was outstanding, borrowed by or on behalf of 42.6 million individuals. At the end, about $1.6 trillion in such debt was outstanding, borrowed by or on behalf of 43.4 million individuals. In general, the debt relief described in this In Focus was available only for student loans held by ED. All Direct Loans (comprising 88% of outstanding federal student loan debt as of the end of the suspension period) are held by ED. FFELs (comprising 12% of outstanding federal student loan debt) may be held by private lenders, guaranty agencies (GAs), or ED. Perkins Loans (comprising less than 1% of outstanding federal student loan debt) may be held by institutions of higher education or ED. Loan Relief The following timeline provides information on selected actions taken by lawmakers and ED to address issues faced by federal student loan borrowers due to, at least in part, the COVID-19 national emergency. The timeline focuses on relief that primarily addresses ED-held student loans. Only administrative actions for which ED explicitly referenced the COVID-19 pandemic are included in the timeline. For an in-depth description of COVID-19 related student loan flexibilities, see CRS Report R46314, Federal Student Loan Debt Relief in the Context of COVID-19. 2020 March 20, 2020: ED announced it would set the interest rate on all ED-held loans to 0% for at least 60 days, give borrowers of these loans the option to suspend their payments for at least two months, and automatically suspend payments on such loans that were more than 31 days delinquent starting March 13, 2020. March 27, 2020: Congress and the President enacted the Coronavirus Aid, Relief, and Economic Security Act (P.L. 116-136). The act suspended interest accrual, monthly loan payments, and involuntary collection on Direct Loan program loans and ED-held FFEL program loans through September 30, 2020. It specified that suspended payments were to count toward the 120 monthly payments required under the Public Service Loan Forgiveness (PSLF) program, the maximum repayment periods under the income-driven repayment (IDR) plans, and the nine voluntary payments required for individuals to rehabilitate their defaulted loans. Soon thereafter, ED specified these policies would also apply to ED-held Perkins Loans. August 21, 2020: ED announced, in accordance with a Presidential Memorandum dated August 8, 2020, an extension of the interest, payment, and collection suspensions through December 31, 2020. December 4, 2020: ED announced an extension of the interest, payment, and collection suspensions through January 31, 2021. 2021 January 21, 2021: ED announced an extension of the interest, payment, and collection suspensions through September 30, 2021. March 29, 2021: ED announced a suspension, through the end of the COVID-19 emergency, of the requirement that certain borrowers who received a Total and Permanent Disability (TPD) discharge provide subsequent earnings

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