It’s no secret that student loan borrowers have faced more than their fair share of twists and turns in recent years. And between the still-undecided fate of several key initiatives and the upcoming presidential transition, many are wondering: what’s in store for borrowers in the new year? 

While it’s still too soon to know what changes 2025 will bring, the events that have shaped the student loan landscape over the last five years could offer clues. Keep reading for a look back at landmark moments from 2020 until today, including milestones related to the student loan repayment moratorium, the Biden administration’s multiple attempts at student debt forgiveness, and the still-ongoing legal battle to uphold the SAVE plan.

Jump to:

• 2020
• 2021
• 2022
• 2023
• 2024

2020

March 20, 2020: In response to the burgeoning COVID-19 pandemic, the Department of Education (ED) implements an emergency policy that waives interest accumulation on ED-held federal student loans for at least 60 days, allows borrowers to opt into suspending the next two months’ loan payments, and automatically suspends payments on loans that had already been in delinquency for at least a month. 

March 27, 2020: The Trump administration signs into law the CARES Act, which — among other COVID-19 relief efforts — extends the freeze on interest, suspended payments, and paused collections on defaulted loans through September 30, 2020. 

August 8, 2020:  The student debt relief measures are extended through the end of the year.

December 4, 2020: The student debt relief measures are extended again through January 31, 2021.

2021

January 20, 2021: On his first day in office, President Biden extends the student debt relief efforts established by the CARES Act through August 31, 2021. 

March 11, 2021: President Biden signs into law the American Rescue Act of 2021, which includes a provision that gives tax-free treatment to any federal student loan forgiveness granted between December 31, 2020, and January 1, 2026. 

August 6, 2021: The Biden administration announces an additional extension of the student loan moratorium through January 31, 2022.

October 6, 2021:  ED announces plans to overhaul PSLF, and launches a year-long waiver that allows previously ineligible payments to count towards the PSLF program’s requirement that borrowers must make ten years’ worth of monthly payments before they can receive forgiveness.

December 22, 2021: The student loan moratorium is extended again through May 1, 2022, despite ED originally stating that the previous extension to the student loan moratorium would be its “final”.

2022

April 6, 2022: ED announces that it will extend the student loan moratorium through August 31, 2022. ED also announces a temporary “Fresh Start” program to allow borrowers who had defaulted on their federal loans to be placed back into good standing and have the default wiped from their credit report.

April 26, 2022: ED announces a one-time adjustment to allow previously ineligible payments to count towards borrowers’ progress towards forgiveness through income-driven repayment (IDR) plans or PSLF.

August 24, 2022: President Biden announces a groundbreaking initiative to grant student loan forgiveness on the largest scale ever. Under Biden’s plan, borrowers whose annual income totaled less than $125,000 (or $250,000 for married borrowers) would receive $10,000 in loan forgiveness; if the borrower was a Pell Grant recipient, they would receive $20,000. In the same announcement, Biden also shares that the student loan moratorium would be extended — yet again — through December 31, 2022.

October 17, 2022: The application for Biden’s forgiveness plan is launched. More than eight million applications are received within the first three days.

November 14, 2022: In response to a lawsuit filed by lawmakers from six Republican-led states, a federal appeals court issues an injunction that forces ED to suspend the student loan forgiveness application — less than a month after the application was launched. In response, ED announces that the student loan moratorium would be extended through the earlier of 1) 60 days following a resolution in the litigation against the forgiveness plan, or 2) June 30, 2023.

December 23, 2022: Congress passes the SECURE Act 2.0, setting the stage for Section 110 — which enables employers to match workers’ student loan payments with retirement plan contributions — to be realized.

2023

January 10, 2023:  ED shares a proposal for a repayment plan it says would be “the most affordable IDR plan that has ever been made available to student loan borrowers,” offering much-needed good news for borrowers as the fate of Biden’s forgiveness plan remains uncertain. 

June 30, 2023: The Supreme Court strikes down Biden’s initiative to forgive up to $20,000 per borrower in a ruling that deems the plan unconstitutional. The conclusion to this litigation also marks the start of the final 60 days of the payment freeze, meaning that monthly student loan payments are finally scheduled to resume — after a total of nine extensions over a three and a half-year period  — on October 1, 2023.

Later that same day, the Biden administration announces its intention to pursue an alternative path to large-scale loan forgiveness and promises to expedite the rollout of the new, ultra-affordable repayment plan — dubbed the Saving on a Valuable Education (SAVE) plan — to allow borrowers to enroll before loan payments resume. Over the next two months, more than four million borrowers would enroll in SAVE.

October 1, 2023: After more than three and half years on hold, federal student loan payments finally resume. This date also marks the start of the “on-ramp” period, which was set in place by ED to protect borrowers from the consequences of missed student loan payments for one year following the return to repayment — a safety net that would quickly prove to be much-needed, with 40 percent of borrowers missing their payment for the month of October. 

October 10, 2023: The Biden administration begins the negotiated rulemaking process for a so-called “Plan B” initiative to grant student loan forgiveness to specific borrower groups. 

2024

January 1, 2024: Per the SECURE Act 2.0, employers are permitted to match employees’ student loan payments made on or after January 1, 2024, with tax-advantaged retirement plan contributions 

April 16, 2024:  The Biden administration releases its first draft of guidelines for its initiative to provide debt relief to borrowers whose current student loan debt exceeds their original balance, borrowers who have been in repayment for longer than 20-25 years, borrowers who qualify for but have not yet received forgiveness through existing programs, and borrowers whose schools failed to provide sufficient value. 

June 24, 2024: In response to lawsuits filed by state lawmakers in the spring, two federal courts temporarily block ED from granting further loan forgiveness through SAVE, and from implementing a planned change that would cut monthly payments under SAVE in half —  just days before the change was scheduled to go into effect.

June 30, 2024: The 10th Circuit Court of Appeals allows ED to implement the change to SAVE’s payment calculation, but upholds the previous decision that blocks ED from granting further forgiveness. ED responds by placing the eight million borrowers who are enrolled in SAVE into an administrative forbearance, under which loan payments and interest accumulation are frozen.  

July 18, 2024: The 8th Circuit Court of Appeals issues a stay that prohibits ED from facilitating SAVE in its entirety, until the lawsuits against the plan can undergo “further consideration” by the courts. ED announces that the administrative forbearance for borrowers enrolled in SAVE will continue until further notice, and disables its online applications for SAVE, other IDR plans, and Direct Consolidation loans.

August 1, 2024: The Biden administration announces that starting the following day, it will begin emailing borrowers to inform them of the administration’s intent to begin implementing its plan for targeted student loan forgiveness — the terms for which have not yet been finalized — in the fall. 

August 28, 2024: The Supreme Court denies ED’s request to lift the injunction against SAVE.

October 1, 2024: After a year-long run, the on-ramp period expires, removing borrowers’ protection against the consequences of missed payments, including delinquency, default, and credit score impacts. 

October 3, 2024: A U.S. District Court in Missouri issues a preliminary injunction that blocks the Biden administration from moving forward with its plan for targeted student loan forgiveness until a lawsuit against the plan, which was filed in September by seven Republican-led states, is resolved. 

October 21, 2024: ED advises that borrowers enrolled in SAVE should expect to remain in administrative forbearance for at least six months. In the same announcement, ED also shared that due to the injunction against SAVE, it is barred from issuing forgiveness under any IDR plan; in the interim, borrowers who qualify for forgiveness through their IDR plan will be placed into an interest-free forbearance until the legal challenges are resolved. 

In addition, ED confirms that it restored its online applications for SAVE and IDR plans earlier in the month. However, ED cautions that SAVE applications will not be processed until further notice, but says it plans to pursue “regulatory action” in the coming weeks so that it can resume enrolling borrowers in IDR plans other than SAVE. 

October 24, 2024: The 8th U.S. Circuit Court of Appeals holds a hearing on SAVE, during which a panel of judges questions ED on why it believes the Higher Education Act authorizes ED to operate SAVE, as posited by the Biden administration. The court does not set a deadline by which it will issue its ruling. 

October 25, 2024: Despite the injunction against its plan for targeted student loan relief, the Biden administration releases proposed rules for granting loan forgiveness to borrowers experiencing hardship. In the announcement, ED says that the proposed rules are on track to be published in the Federal Register for public comment, and that it expects to finalize the regulations in 2025.

November 5, 2024: President-elect Trump wins the 2024 race for the White House. While it’s too soon to know how the new administration will shape student loan policy, experts have suggested that many programs — including SAVE and the new student debt relief initiative — could be significantly changed or reversed.