The current status of federal student loans for college students is that the payment pause and 0% interest rate will end on September 1, 2023. This means borrowers must resume making payments on their student loans. Interest will also begin to accrue on any unpaid balance.
There is no possibility of the payment pause being extended again. This was confirmed
by the Biden administration in June 2023.
Plan now for repayment
If you are a federal student loan borrower, you should start planning for
the resumption of payments. This includes:
- Calculating your monthly payment amount.
- Choosing a repayment plan.
- Making sure you have the money to make your payments.
Things to keep in mind
Here are some additional things to keep in mind about the resumption of
student loan payments:
- If you cannot make your payments, you may be able to defer or forbear your
- You may also be eligible for income-driven repayment plans, which cap your
monthly payments at a percentage of your income.
- If you need help to make payments, contact your loan servicer as soon as
possible. They can work with you to create a payment plan you can afford.
There are many resources available to help you with this process. You can visit
the Federal Student Aid website or contact your loan servicer.
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