Debt ceiling deal would require student loan payments to resume in August

If passed into law, the bipartisan debt ceiling deal will dash any hope borrowers might have that the federal student loan payment pause would be extended for a ninth time.

The Biden administration has repeatedly said the pandemic pause on federal student loan payments would end later this year, but officials have said that before and gone on to extend the pause again.

This time, Education Secretary Miguel Cardona may not be able to do so. The agreement to address the debt limit includes a provision that specifically prevents him from extending the pause on payments again, according to the bill text.

The pause “shall cease to be effective” 60 days after June 30, the bill reads.

That’s roughly in line with the Biden administration’s plan to resume payments either 60 days after June 30 or 60 days after the Supreme Court rules on the separate student loan forgiveness program – whichever comes first. The justices are expected to rule in late June or early July.

The one-time student loan forgiveness program promises up to $20,000 of debt relief for low- and middle-income borrowers if the Supreme Court allows it to move forward. While House Republicans have previously voted to block the program – a bill Biden has pledged to veto – the debt ceiling deal leaves it alone.

When the pause ends later this year, roughly 44 million people will have to restart making payments on their federal student loans – and there is some concern about whether the process will go smoothly.

Many people may be confused about how much they owe, when to pay and how. Millions of borrowers will have a different servicer handling their student loans since the last time they made a payment. Missing payments can result in fees.

Congress appropriated the Federal Student Aid office about $800 million less than what the Biden…