COVID-19 Tax Relief for Student Loan Borrowers

Is there relief for student loan debt during COVID-19?

Individuals paying back federal student loan debt can defer payments through September 30, 2021. Interest payments are also suspended through September 30. Suspended payments will appear as regularly rescheduled payments by credit-reporting agencies.

These deferred payments don’t necessarily apply to private student loans. Check with your loan provider for information on relief for debt payment during the COVID-19 pandemic.

Will my federal student loan debt be collected if I’ve defaulted?

Debt collection is suspended for borrowers who have defaulted on federal student loan debt through September 30, 2021. This means collectors will not take actions to collect payment, such as deducting from a tax refund or garnishing wages.

For those on a loan forgiveness program, suspended payments for these months will still count. An example of this would be the Public Service Loan Forgiveness (PSLF) program.

Can my employer help pay off my student loans?

Yes, employers can pay student loan payments, up to $5,250, tax free up to September 30, 2021.

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