The Biden administration has just extended this student loan relief through at least Sept. 30, 2021.
Make sure Payroll hasn’t been garnishing employee wages to repay federal student loans in the first month of the new year. There’s been another extension for student loan relief due to the COVID-19 pandemic.
Any garnishment orders to pay back employees’ federal student loans are on hold until Jan. 31, 2021.
After being enacted in March 2020, this student loan relief was set to expire on Dec. 31, 2020 until the Department of Education extended it.
If you already withheld money …
Any workers’ wages already garnished for student loan payments in 2021? Employees will automatically receive refunds.
Note: You can’t include garnishments for private loans and other forms of debt in this extension. (They’re subject to different guidance.)
Will the feds extend this again? Stay tuned.