Student Loan Payments Set to Resume in September After 3-Year Hold
- Federal student loan payments will resume by September 1, 2021, ending the moratorium that was first instituted in March 2020 due to the pandemic.
- Payments would resume 60 days after the Supreme Court makes its decision, or 60 days after June 30, whichever happens first.
- Biden will no longer have the authority to extend the current student loan pause, meaning payments will resume for over 40 million borrowers.
- Interest rates will start accruing again after August 29, and most federal student loan interest rates will revert back to the rates they were prior to the pause.
- The Biden administration is considering other flexibilities to ease borrowers' transition back into repayment, such as a grace period and writing off small loan balances of $100 or less.