Student Loans: Stressors and Pitfalls as Repayments Begin and CFPB Actions Against Alleged Fraudulent Conduct -

On March 13, 2020, near the beginning of the pandemic in the U.S., the CARES Act included a pause for all federal student loans. Nearly 90 percent of student borrowers accepted “the option of pressing the pause button on their” student loans. Thus, the U.S. Department of Education ceased loan payments, applied a 0 percent interest rate, and stopped collection on defaulted loans (including garnishments). That pause has been extended repeatedly and borrowers for certain student loans have not been required to make payments for nearly two years. Despite the pandemic pause, the CFPB has actively been engaged in investigation and enforcement activity relating to student loans.