In October, tens of millions of borrowers will be required to pay their monthly federal student loan bills for the first time since March 2020, the Department of Education clarified Monday.
The pandemic-related pause on both payments and interest accumulation has been set to end later this summer, though the exact date payments would be due was a little fuzzy.
The Biden administration had previously said that the pause would end either 60 days after June 30 or 60 days after the Supreme Court rules on the separate student loan forgiveness program – whichever comes first.
A law passed in early June to address the debt ceiling officially prevented the pandemic-related pause from being extended again. The repayment date has been extended a total of eight times under both the Biden and Trump administrations.
“Student loan interest will resume starting on September 1, 2023, and payments will be due starting in October. We will notify borrowers well before payments restart,” the Department of Education said in a statement sent to CNN Monday.
The update was first reported by Politico.
Borrowers typically receive their bill statements from their loan servicer a few weeks before they are due. Not every borrower’s bill is due at the same time of the month.
The Department of Education has said that it will be in direct communication with borrowers and ramp up its communication with student loan servicers before repayment resumes.
Student loan experts recommend that borrowers reach out to their student loan servicer with any questions about their loans as soon as possible, especially if they are interested in enrolling in an income-driven repayment plan. Those plans, which set payments based on income and family size, can lower monthly payments but require borrowers to submit some paperwork.
Federal student…
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