Student loan payments resume after a long payment pause.
After a hiatus of more than three years, student loan debtors will soon see interest start adding up on their balances as the student loan payments resume, with bills becoming due once more this fall.
On September 1, the payment suspension will come to an end, and interest that has been suspended at 0% since 2020 will once again start accumulating before payments are due in October.
Fixed-rate loans will continue to have the same terms as they did before the pandemic-induced suspension period.
There is no likelihood of another extension despite the fact that there have been eight separate ones over the course of two administrations due to language in the bill President Joe Biden signed to extend the debt limit.
The White House and House Speaker Kevin McCarthy, a Republican from California, agreed that the payment suspension would terminate 60 days after June 30.
Biden announced the administration will provide a 12-month “on-ramp” for debtors to get back into repaying their obligations in a press conference following the Supreme Court ruling that his debt relief plan was invalid.
Depending on the borrower, the exact day that payments are due will vary, but unless the borrower is a recent graduate who is still within the six-month grace period after graduation, they will have a payment due in October.