On December 4, the U.S. Department of Education announced it will extend the student loan relief until January 31, 2021, in response to the COVID-19 pandemic [U.S. Department of Education, Press Release, 12-4-20].
During this extension of the payment suspension, collections on defaulted, federally held loans 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.
Without the extension, the relief, which was originally announced in March and then extended in August, would have expired on December 31, 2020.
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 Payroll Information Resources for the APA.