On November 22, the U.S. Department of Education announced an extension of the federal student loan relief until issues concerning the student loan forgiveness program (the Program) are settled in court [U.S. Department of Education, Press Release, 11-22-22]. The relief was set to expire on December 31, 2022.
During this extension of relief for federal student loan borrowers, repayments, interest, and collections are still halted, and any borrower with defaulted federally held loans whose employer continues to garnish their wages will receive a refund of those garnishments.
Loan payments will resume 60 days after the U.S. Department of Education is permitted to implement the entire Program or the litigation is resolved. If the Program has not been implemented and the litigation has not been resolved by June 30, 2023, payments will resume 60 days after then.
To learn more about federal and state laws, regulations, and information to keep your company's payroll operations in compliance, check out Payroll Source Plus!
Jyme Mariani, Esq., is Managing Editor of Payroll Currently and Senior Manager of Payroll Information Resources for the APA.
