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Federal student loan 0% interest rate extended

  • Updated
Federal student loan repayment suspension, stopped payment collections, and 0% interest rate have been extended.

Citadel cheerleaders run on to the field before last year’s Charleston Southern game.

On Dec. 4, U.S. Secretary of Education Betsy DeVos extended federal student loan flexibilities.

Currently, the 0 percent interest rate, suspension of payments, and stopped payment collections on federal student loans owned by the Department of Education (ED) are set to continue through Jan. 31.

Check regularly for the latest information on these flexibilities and when they are scheduled to end.

What does this mean?

• You are not required to make payments on ED-owned student loans until after Jan. 31, 2021, and no interest will accumulate.

• Collection activities, such as Treasury offsets and wage garnishments, will not resume until after Jan. 31, 2021.

• If your loan is in the process of being rehabilitated, you will continue to receive payment credit for each month during the suspension period when you would have otherwise made a payment under the terms of your rehabilitation agreement.