On December 22, 2021, the U.S. Department of Education announced it will extend the federal student loan relief until May 1, 2022 [U.S. Department of Education, Press Release, 12-22-21].
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.
The relief had been set to expire on January 31, 2022. The Department of Education will release information about the payment restart as the end of the pause approaches.
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.
