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Pause on Federal Student Loan Payments Through December 2022

The Biden administration is going to let you pause your student loan payments––until December 2022

by Team Paidly
Aug 29, 2022 3 min read
piggy bank saving money on federal pause

The Biden administration announced on August 24, 2022, that it will extend the freeze on payments for all federally-held student loans through December 31, 2022. This decision will mean that borrowers won't have to make payments until January 2023. The announcement stated that this will be the final extension of this pause.

What Does This Mean For My Loans?

If your federal student loans qualify for the freeze, you will not have payments due until January 2023, and interest won't accrue on your loans. If you've been struggling to make payments on time or if you've been in default on your loan, now is the perfect opportunity to get back into good standing with the federal government.

The extension will be applied automatically—but not all borrowers qualify for this option. If you're curious about whether or not your student loans will be extended through January 2023, check out Federal Student Aid's website.

Take Advantage Of The Freeze

We know that a little extra help can go a long way, with the government freezing your federal student loan payments until January. You can use this time to make extra principal payments on your loans, which will ultimately cut down on how much you have left to pay overall.

If your employer is not already using Paidly to help provide supplemental payments to your student loans, now is a great time to introduce them to meet Paidly. Help your employer understand why they should offer an employee student loan repayment benefit (SLRB). With an employer contribution, you and your employer can take advantage of the new tax advantages.

What About The Public Service Loan Forgiveness (PSLF)

Many borrowers who are worried about the freeze on federal student loan repayment options are wondering if they can still apply for PSLF. The answer is yes! Nothing has changed concerning PSLF eligibility requirements, so you can still submit your application even if your loans are not being serviced by FedLoan Servicing.

Two Major Federal Loan Servicers Make An Exit

The Department of Education announced that it will take over servicing for borrowers with federal student loans from two major servicers, Navient and Fedloan Servicing.

  • FedLoan will stop servicing loans in December 2022
  • Navient will service loans through December 2023

Borrowers who have federally serviced loans by these companies should hear from their loan servicer about whether they'll be transferred to the Department of Education or another servicer. The Department says it will contact borrowers in the coming months with more information.

You should make sure your contact information is up to date with these servicer(s). Download all your statements and documents related to your loans for your records. If your loans have been transferred and you need your loan servicer to be updated, please reach out to [email protected] with any updated statements so Paidly can continue to send payments without interruption.


While the pause applies to more than 43 million Americans who owe a combined $1.6 trillion in student debt held by the Federal Government, there are more than 7 million borrowers who have defaulted on their student loans. Private loans will remain unaffected by the pause, 7.89% of outstanding student loans in the U.S. are private totaling an outstanding $131.10 billion according to MeasureOne. An employer supplemental student loan benefit like Paidly can help employees seek financial freedom.

Let's talk repayment benefits

Talk to one of our team of experts that will answer any questions or provide you a demo.

The information provided is of a general nature and an educational resource. It is not intended to provide advice or address the situation of any particular individual or entity. Any recipient shall be responsible for the use to which it puts this document. Paidly shall have no liability for the information provided. While care has been taken to produce this document, Paidly does not warrant, represent or guarantee the completeness, accuracy, adequacy, or fitness with respect to the information contained in this document. The information provided does not reflect new circumstances, or additional regulatory and legal changes. The issues addressed may have legal, financial, and health implications, and we recommend you speak to your legal, financial, and health advisors before acting on any of the information provided.

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