Borrowers have not had to pay since March, but the exemption expired on 31 December. DeVos has also extended the suspension of interest accrual as well as the suspension of the recovery of overdue loans.
A broader version of student loan relief was included in the $ 2 trillion economic stimulus package signed two weeks later. Under the program, the U.S. government automatically suspended payments until September and waived interest on federal student loans. Trump later set an expiration date at the end of the year with an implementing measure.
The suspension and interest exemption only apply to federally held loans. It covers about 85% of all federal student loans, including loans called direct federal loans and PLUS loans, which parents can take out on behalf of their children.
It excludes some federal loans that are guaranteed by the government but not technically maintained. These were usually paid before 2010.
Although borrowers will not have to pay until January 31, they will still be able to do so and can enjoy the 0% interest rate.