The Payment Pause on Federal Student Loans is finally coming to an end. The Payment Pause began in Spring 2020. The Payment Pause has been extended a number of times.
Since that time no payments have come due on Federal Student Loans. No interest accrued during that time. And the paused payments counted toward any required payments under Federal Student Loan Forgiveness programs.
The Payment Pause on Federal Student Loans expires on August 31, 2023. Interest will begin accruing as of September 1, 2023. Payments will restart in October 2023.
The exact date in October that payments on Federal Student Loans restart depends on your servicer. Borrowers must reach out to their servicers now to find out when they must make their payments in October.
Meanwhile, President Biden’s Student Loan Debt Cancellation Program remains in limbo. This Debt Cancellation Program permits eligible borrowers to cancel up to $20,000 in Pell Grants and up to $10,000 in non-Pell Grants. The Student Loans must be held by the U.S. Department of Education and borrowers must satisfy income requirements.
This Debt Cancellation Program was challenged in a number of Federal Courts. An appeal is currently pending before the U.S. Supreme Court. A ruling from the U.S. Supreme Court on the Debt Cancellation Program is expected sometime this year.