Your loan payments will be paused, and your interest rate will stay at 0% until Dec. 31, 2022. For example, say your grace period ended on April 15, 2022. In this case, your payments would be suspended from April 15, 2022, through Dec. 31, 2022. The interest rate on your loans will stay at 0% throughout this period.
Interest on your loan builds up while you’re in school. Normally, your unpaid interest would capitalize (be added to your principal balance) at the end of your grace period. But your interest will not be added if your grace period ends between March 13, 2020, and July 1, 2023.
The Department of Education asked loan servicers to undo interest capitalization that has an effective date after March 13, 2020. Your loan servicer will reach out if they are reversing your capitalized interest.
Consider applying for an income-driven repayment (IDR) plan, which could make your monthly payment more affordable
Compare your available loan repayment options through Loan Simulator. You can also contact your loan servicer to make sure you’re on the best repayment plan for you.
Unless you ask for a different repayment plan, your loan servicer will put you on the Standard Repayment Plan.